Competitor-Based Pricing

In pricing your product consider the competition.

In well-established markets where the competition is entrenched, you may need to set the price in the same range as the competition.

Review the competitors for their pricing structure.

Take note of the price per unit and positioning of the competitors’ products in the market.

Premium products set the upper bound for the price while value products set the lower limit.

Competitors may be pricing to gain market share rather than revenue.

You’ll need to take this into consideration as your strategy may differ from the competition.

Look for ways to differentiate your product and thus charge a higher price.

This could be better branding, more features, better partners or more.

Consider the category you are in and ask if you could reposition your product to another category with a higher growth rate and a higher price.

If using competitive pricing then you’ll need to monitor the competitors pricing quarterly to stay updated.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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