- by Rory Ramsden
When putting together your offer for your new product launch, you should feel that you have stepped outside your comfort zone by over-delivering on your promise. Then the simple answer to what you should charge is to add up the retail price of each piece and divide that by 10.
That’s it in a nutshell. But consider this…
When Porsche launch a new product/car, they charge big bucks because of their established position in the market. Porsche buyers are not necessarily Ferrari buyers. A Bentley buyer would never buy a Rolls Royce. The market has a well defined perception of each brand.
You have to take the time to position yourself in the same way
During your product launch, make sure you train your market to aspire to own a part of your brand. The more successful you are at doing this, the more money you will make
Brand perception defines the price
The more you have bonded with your core market, the stronger their perception of your brand, the more they value that brand, the more likely it is that they will pay a premium price… because it’s you!
To be sure of the price to pitch your new product launch, test different price levels.
That’s why you should always start with a beta launch and get feedback by running a survey.
The lower your price the more your customers will treat your product as an impulse buy. A throw-away spur of the moment type thing. And the more returns you may get.
The higher your price the more likely your clients are to value your product or service. They have more invested in it.
We live in tough economic times. Your product launch marketing strategy has to be focused on the segment of the market which has most to spend and the least to lose. That is, the segment that does not see your product as a high ticket item or high risk in relation to the value that you are offering
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