The Price is Right

The price someone is willing to pay is decided by the value they perceive in whatever it is you are offering. The starting point for pricing is therefore an understanding of how perceptions of value are formed. Perceptions of value are almost unique to each individual for each product and a range of different prices is therefore essential to maximising either volume or value of sales. However, you still need a headline price, or at least some idea of the range within which your prices should fall. So how do you decide the right price to offer something at, particularly if it is ‘new to market’?