Pricing Products

From Open Source Ecology
Jump to: navigation, search
  • How to Price Your Products - Inc - [1]
  • Pricing your product usually involves considering certain key factors, including pinpointing your target customer, tracking how much competitors are charging, and understanding the relationship between quality and price. The good news is you have a great deal of flexibility in how you set your prices. That's also the bad news.
  • "What's the difference between an $8,000 Rolex and a $40 Seiko watch? The Seiko is a better time piece. It's far more accurate". The difference is your ability to sell."
  • There are two main pitfalls you can encounter - under pricing and over pricing.
  • Interesting article about undercharging - [2]
  • The Art of Pricing - [3]

OSE Notes

  • Price point needs to cover costs according to a set budget goal, and allow for growth
  • Above that point, everything is negotiable and subject to reevaluation at all times
  • Offer different pricing options. As at an auction, different people buy at different prices.
  • Extra features may be chosen at higher cost
  • Consider opportunity cost