How would you price a new product?

12 replies
When pricing a new product you want to create, what things do you take into consideration? How would you price pure information, training, software, service, etc.? What if your product is fairly unique and you have nothing to compare it to?

#price #product
  • Profile picture of the author onegoodman
    Tricky question, i look into competition mainly if any is out there, if not, i would compare it to close products. Not necessary ideal.

    I am currently running new service which meant to be more competitive in price, but I also realized, low prices can be as harmful as high ones.
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    • Profile picture of the author Nauman K
      Nice reply by Old 3rd Oct 2016, 03:16 PM #2
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  • Profile picture of the author IM Nathan
    What kind of value do you see in your product? What are the competition charging? Does their product offer more or less than yours? What would you be happy paying?

    These are all the questions to ask. There's no right or wrong answer I think. It's more or less, trial and error. GL
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  • Profile picture of the author aizaku
    i'd see what similar products sell for

    then i d work from there

    id test to see what i can get away with consistently.

    -Ike Paz
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  • Basically, what I do whenever I have a new product is checkout the competition, if there's any. You don't want to price it too high, because you are just introducing the product and you don't want it too low for people to doubt its effectiveness
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  • Profile picture of the author Hatuko
    Originally Posted by onegoodman View Post

    I also realized, low prices can be as harmful as high ones.
    Hi, interesting - what do you mean by this?
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    • Profile picture of the author inetmilionaire
      Originally Posted by Hatuko View Post

      Hi, interesting - what do you mean by this?
      This I know well enough. Too high a price and no-one will buy a product, too low and psychology will come into play - people will think of it as a poor product, even if it's great.

      This is the reason product sale pages you see will list the value of products in the package before offering a discount price. Customers will think it's good value then, not cheap "rubbish".
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  • Profile picture of the author inetmilionaire
    My problem in the product I have is useful data - a lot of it. No training or similar, just a lot of information that will be valuable to the right person who can use the data for marketing purposes, which in itself is hard to come by and hence explains it's inherent value.

    If it was training or a money making idea then I'd have plenty of products to compare it to (to estimate a price point) but because it's just data that is another thing entirely. I haven't seen a product like this before.

    I'm thinking I might try a dime sale, or a split test at various price points. I might also wrap it with an relevant freeby, that might bring provide familiarity to most potential customers. It still doesn't estimate the value of the data, though.
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  • Profile picture of the author randyman
    You're selling data? there are tons of example for that.

    Someone selling list of all amazon categories for $29, for example.

    How much your potential customer usually pay for services? For example, moz selling their subscription at $99/mo. Can you gauge how useful your data to moz's service?

    Also try dimesale, $$ for first 100 customers, something like that.
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  • Profile picture of the author Alexis Gil
    If you sale data, maybe try to analyse what is the material benefit someone can get using them, what amount of information you have, what is the niche. Maybe it will be easy to find similar 'product' for comparison.
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  • Profile picture of the author krees
    If you look at something similar, who's to say their product is priced right. I would start out with what you think your product is worth or what you would pay for it. You can see if it's selling. If it's not making sales, adjust the price.
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  • Profile picture of the author cetab titan
    First, I would take into account the cost of creating the said product. Then factor in the competition and the other overhead costs that I may incur and the number should give me a pretty decent profitable amount.
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