#AskPS
Rajesh Garg .

How did you price your product?πŸ’°

If you have launched a product, which I am sure plenty of us have, could you elaborate on how you price your product?

After initial customer acquisition, Have you increased/decreased your price? What was this decision based upon?πŸ€”

I’m interested in having a general discussion about how you researched and arrived at your current price, no matter the pricing model that you use.

Originally Posted Here
10 Comments

Shabia Ravi Walia

I studied very luxurious brands pricing and budget brands pricing, saw the gap between the two and found my sweet spot in terms of pricing in that gap. No I haven't changed my pricing yet. People love our pricing. πŸ˜€

Rajesh Garg

What profit percentage you generally keep in general?

Shabia Ravi Walia

since I deal in bath body products, 20-30%

Rajesh Garg

Great! Any specifics apart from competitor pricing, you keep in mind?

Shabia Ravi Walia

I think a lot about how much I would be willing to pay for the value I am getting. I think abt how I feel cheated when some products are overpriced and feel good when I get more value than I paid for. I try and make sure my customer gets that feeling. So in a surgery we did, 80% of our customers actually said they wldnt mind paying us more for the quality they were getting. That made me feel good but I didn't increase the prices. Overdelivering is good, always!!

Jayesh Keswani

So whatever price you take to make a product (or procure it from the vendor) -a + shipping charges (b)+ generally the pricing is (a+b) x 1.3(30%) of that. Have a target to have minimum number of products to sell to maintain your operational expenses in that 30%. That's when you'll play around that pricing as per your needs.

PS, strictly my strategy. Any feedback is appreciated.

Abhishek Avikk Gupta

During Launch: 5-15%

After Acquiring New Customer: 20-25% or more

We always keep a threshold for charging clients.

Suneil Barsaiyan

There are different pricing strategies which depends on the product type like "Penetration strategy" where price has been initially kept less to gain a significant market share.(Jio followed this). Similarly, Skimming strategy calls for maximum recovery of investment done on product R&D by keeping the price high initially (Nokia used to.follow this).

So, decide as per product, market and competition.

Vishnu Goyal

Price always at where you are sure customer would buy , then would raise it comfortably step by step.

Surender T Natarajan

For SaaS products, the simplest one is 5x to 10x the value the company derives from the paid price.

For example, a person might be spending 3 days in doing some work, your product reduces it to like 1-hour types. Then you can charge for 24/10 =2.4 hours of the man's effort as pricing.

This is the simplest way to start.

Again, The pricing completely depends on the segment and value prop and to some extent competition.

Usually, when you say segment, it is a well-defined segment.

Example: For a SaaS player that provides CRM, the segment definition needs to be something, like company size, sector the target operates, their revenue, head-count & problem it solves better than other CRMs that makes this new CRM a go-to CRM for that segment

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