What price to put to him to a product
1 December 2008 - 13:49
The price is the monetary value that is assigned to him to a product at the time of offering it to the consumers.
In order to be able to determine the price of a product, usually they are taken into account 2 methods, the method of costs and the method of average of market:
1. Method of costs
This method consists of adding all the costs of the product, and to the turn out to add the gain margin to him that is wanted to obtain, for example, if the costs of producing and of commercializing our product add $100, and it is wanted to obtain a margin of gain of 25%, then the price that we would put to him to the product, would be of $125.
The disadvantage of this method is that when determining the costs of a product, can be avoided without wanting some, that is to say, can have hidden costs; these hidden costs usually appear mainly in the services.
2.
This method consists of determining the price of a product, basing us on the price average of the products similar to ours that exist in the market.
Nevertheless, these methods must be used only like reference, since determining what price to put to him to a product, does not have to be a so simple task, but a decision that we meditate and we analyze well.
When determining the price always we must consider these methods, we always must know which is the cost of our product (so that never we assign a smaller price to him to its cost), and always must know which is the price average of our product in the market (so that, for example, we do not move away much of him).
But, mainly, when determining the price we must consider the consumer, always we must put us in its place, how much we think that it would be arranged to pay by our product, considering the prices of our competition (they are similar or complementary products), the characteristics, attributes or quality of our product, its benefits, their exclusive feature and its mark.
Labels: Strategies of marketing, Marketing, Product
Compártelo
Related contents:
- The design of the product
- The mark of a product
- The promotion of the product
- The distribution of the product
- Low prices, high prices averages and prices
