IMC92 Challenges of Product Pricing

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Ben is joined by Kate (Journey in Style) and Dan (Dan Barker Studios) to discuss how these two businesses have negociated the challenges of product pricing.

Notes

• How to determine optimal pricing strategy for products?
• Does competition factor?
• What quoting software
• Common pricing models
  

Value pricing

• Set price based on worth to customer
• What someone is willing to pay

Good, Better, Best

• Three options
• Useful for finding the right pricing level
• Gives people a choice – Removed a yes/no decision
• No one wants the good one
• Examples:
  • https://www.shopify.com/uk/pricing
  • https://hbr.org/2018/09/the-good-better-best-approach-to-pricing

Value Ladder or Product staircase

• Small differences between packages
• People upsell themselves
• Can have too many options
• Example: https://www.apple.com/iphone/

Product Pricing Tricks

• Dynamic pricing – Increases when you re-visit

• Surge pricing
• Price conditioning

Helpful Links

• Quotient App

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