Pricing
Help with This Page:
This is the screen where you enter the prices you think you will charge your customers for your products. Your goal here is to define the prices that you think your customers will pay in the future. After you launch the products, you will be learn what prices are the most effective . . . and then you will return here and change the prices. In fact, you might end up change prices constantly in response to competitive behavior.
Here is what the screen looks like:
On this screen, enter the price you will charge customers for each product in each market for each year. If you want to propagate a value from any cell to the right, click on the black and yellow arrow.
- If selling direct to consumers (i.e., B2C), this is the expected average price after discounts and sales.
- If selling to other businesses (i.e., B2B), this is the expected average price after discounts and volume sales.
- If selling using external distributors/channels, this is the expected average wholesale price you are selling to these parties, after discounts & volume sales.
- If using internal salespeople, do not discount prices by their commissions.
- Do not include sales tax
Questions about Pricing Strategy:
Can I use low price as my primary business strategy?
Can I use low price as part of my business strategy?
What does it mean to cover your fixed costs?
Which do I define first? Products? Markets? Prices? Or my sales technique?