par
Rohit Sharma , Consultant , Bahrain Financing Company
There are four popular pricing methods -
• Skimming: Involves the introduction of a product at
a high price for affluent consumers. Later, the price is
decreased as the market becomes saturated.
• Discount: Based on a reduction in the advertised
price. A coupon is an example of a discounted price.
• Loss-leader: Based on selling at a price lower than
the cost of production to attract customers to the store
to buy other products.
• Psychological: Based on a price that looks better,
for example, $4.99 per pound instead of $5.00 per
pound.
So my opinion is to go for a pricing mix of Skimming pricing & Psychological pricing.
par
Renae Richardson , Education Coordinator/Director , Oxford Learning Center
A good base to begin for pricing valuation would be cost of production and then include costs to move the product whether it be to distributors or if you are doing direct sells. Remember you must at least get a ROI. You want to make a profit. You probably also want to look at similar products in the market. There may not be a product exactly like yours but there are several products within the market that you are entering you can use as a comparative base. It will give you an idea of how much people are willing to spend on a particular product within that field. You can do your markup based on whatever value you believe your product will offer to the consumer. You have to sell your consumers on that value.
Bottom line is to load as much margin as possible to maximise the profit for a product having no competition currently. Make hay while the sun shines.
Tomorrow when competition walks in then the price can be dropped to make it competitive. Drop to an extent that the competition gets killed. You have already made your margins earlier.
you set high prices due to monopoly because there is no alternative product in market its only one form producing the product. its example from Pakistan monopoly of wapda they set high prices to get advantage and generate high profit,
I would make a market study asking to my target how much they would pay for it and after, choose between the highest prices. If we have no competitors,... it's an exclusive product. So, we maximize profit and customers pay a price they think is fair for it.
par
munir mohsin , Managing Director , Pakistan Ordnance Factories
For a new product the price will b tagged as introductory price linked with cost of production plus minimum profit.Efforts for development of market would b essential which would necessitate strong marketing skills.
par
Zeena Yahia , Marketing Executive , Ajman Free Zone
Figure out your total cost associated with planning, manufacturing, and bringing the product to the market. Then if your target market is high income, add a larger profit margin, if they are low income, then a modest profit margin should satisfy both the market and your company.
par
Arash Lajevardi , National Sales And Marketing Manager , Bastan group
If our brand is famous and we start to produce new products we can sell our products in high price .
And for a non.famous brands , we should add some margin to show our products , and when we have reasonable demand we can change our prices . But really slow.
