GEP-02: Price New Products

Pricing a new product is challenging.

There’s no data to work with. At least not directly.

You have to break down the product into its parts. You have to consider the cost of production. You have to look at the competitive landscape and find where your product fits into it price-wise.

It’s hard.

But, of course, that’s why you hire us. We can do it.

We’ll dig into all these details and put together a plan.

Our philosophy on pricing new products is humble. It’s a hard problem and there aren’t easy answers. We try to put together a plan that includes a canary, a way to tell quickly whether the initial price is too high or too low. Of course, we understand this isn’t always feasible, but it’s incredibly powerful.

The exact form the canary takes can vary, but the key idea is to expose customers to at least two prices for the product, so that you quickly obtain data on how the product performs at multiple price points and can adjust the strategy towards the more promising direction.

We have creative solutions for finding a strong starting price and improving it as data becomes available.

Reach out today to see what we can do to help you price your latest and greatest products.

Contact us to see what we can do for you.

Learn more about our products.