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Pricing Strategy

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Determining the price of a product or service means balancing product costs, and the supply/demand equations. For highly-differentiated products the supply/demand equation is speculation until the product is introduced. Sometimes a new innovation or feature can spark demand or justify a higher price. 

Determining the best price to charge should take into account direct costs and development costs, the competitive situation, the capabilities of the sales force and an assumed supply/demand curve.  If the price is too high, some won't buy your product, if the price is too low your product may not be as profitable as it might have been. 

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Telephone: +1 (415) 420-6519
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Copyright 2004 Silicon Valley Technical Marketing Services
Last modified: 21 JAN 2005