Market research helps set product prices

New Ideas in MarketingEssential news for marketers, summarised by YouGov
March 18, 2021, 4:22 AM GMT+0

Analyse competitor pricing for similar products and services to create a pricing strategy. 

To create pricing strategies businesses must consider their sales channels, cost of goods, and competitor pricing while understanding their consumers. Evaluating the value offered to consumers by assessing factors like satisfaction, issues resolved, and quality can help businesses price products appropriately.

With aspects like employee wages and world events impacting the market price, consider demand and supply to determine the current market price of a product. Researching market trends, demographics and supply and demand, while checking-in with industry trade associations can help determine appropriate pricing strategy.

Calculate expenses for materials, equipment, shipping costs and more to find the cost of goods sold (COGS) and rightly price the products. Brands must also factor-in sales distribution channels like B2B, B2C and ecommerce, as each can vary in costs and can impact the final pricing.

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