PRICING A PRODUCT

When new product comes into the market it is normally price high. Example like iPhone, LCD TV, LED TV. After some time the price dropped.

Price a product need carefully plan. Too high, the product will not sell. Too low, the product is consider “cheap” and expecting of low quality.

In my recent book, it stated to price the product at the correct range that will over-whelm the market. In this way, once the product is launched, it deters the competitors from competing. Note the statement is the CORRECT range, not low.

Of course, if your product has patent or feature that cannot be duplicate by competitors. You can price it high.

Low price with high sales volume may not make profit. High price with low sales volume also may not make profit. It is right price makes the best profit – that the way to make the business.