Before launching your product, pricing is what you need to know first
Before launching your product, pricing is what you need to know first
The one of the best cornerstone decision regarding product popularity is only their pricing because it impacts your business value. Your pricing decision value includes cash flow, profit margin activity, in which you need to afford product expenses.
When you launching a product, it’s quite easy to stick to pricing factor but it’s important to launch your decision first. You can get the pricing data from testing and launching the product with the help of real customers. However, you are still in need to start up with new factor of pricing that really works.
Why the product pricing approach really works?
You need to sustain your business value, as it is included the most important factor. If your product price faces unsustainable profit or loss margin than you need to grow a challenging scale level.
Meanwhile, another important factor that needs to add up into accounts depends on the pricing relation to your competitor, so it’s easy to understand pricing strategies or customer’s expectation level.
How can you calculate the sustainable pricing factor?
To calculate the factor there are three main strategies
- Add variable cost according to per product
- Add the profit margin level
- Don’t forget to calculate the fixed cost
Add variable cost according to per product: the first thing is to understand the product cost for outdoor products. You are responsible to answer straightforward if someone orders your product.
Add the profit margin level: once you calculate the variable cost, you can get the total product cost, according to time building margin.
Don’t forget to calculate the fixed cost: it is your duty to remember the variable cost. However fix cost is including as an expense, whether you are selling 10 products or 1000 product in one time.
