So you now have created your product. What's next? You now have to determine the right price for your product. But first consider these two strategies on pricing your product.
1. Skimming : low number of customers, high profit margin
2. Mass : high number of customers, low profit margin
You might be wondering which works best, but actually that all depends on your product. Who will need your product, and depends on the relationship between you and your customer and the amount of work you want to put into selling your product.
For better understanding of the aforementioned strategies and to choose which one will work best on you, here's the breakdown.
With the skimming strategy, customers are more likely to have a high satisfaction rate, because of a more personal relationship with you, or a more customized product. And with the mass strategy, the customer will expect more service, and more product for their money, which means more work for you. So the right answer is…whichever one works best for you and your company. The most important thing to remember is, no matter what you choose, you’re only worth the price you ask for!
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