How do you price your product in a startup? This seems to be complicated because, it is an initial startup and you hardly know the market structure. Therefore placing the right price tag atop your company product is not an easy task. Memeburn gives us an insight into the pricing aspects of a product.
Depends on Product/ Service: What is that you are serving in the market this depends on the market you are catering to based on your product or service. If you analyze all these, putting a price tag onto your product is as simple as child’s play. Decide the demography and conduct a survey. List your buyers list and then decide if it has to pricey or low priced!
Competitors : Look at your surrounding and see if there is a startup around, if there is one; research about the company and their price strategies depending on their product, if not the ball is in your court. You are free to play your game! Keep in mind that your price has to be reasonable to the masses.
Investors: Who are the people investing in your startup? If they are family or friends, you can take time to return the money that they have given. If there are other sources, there is a stipulated time to return the amount to them. You should ensure that your product or service is sold in the market like hot cakes.
Strategies: Do you have any strategy to decide the price of the product. If not, prepare your mind to face your rivals. It’s going to get better as days pass, so it is always better to be practical and plan things accordingly.
Service Cost: How much can you charge for a service? The answer lies in all kinds of service you are delivering to the society. If it is a food chain delivery startup or a packaging service you need labor whom you have to pay salary to. Therefore see the labor; overhead costs and the amount of hard work taken into account, to decide the price.