BACK TO BLOG

5 Things To Consider Before Pricing Your Product

December 23, 2015
- Update on 
September 20, 2018
BACK TO BLOG

5 Things To Consider Before Pricing Your Product

December 23, 2015
- Update on 
September 20, 2018
Trends
Share on

Okay so you’ve spent a hundred hours coming up with a new product, you’ve figured out your supply chain, and your retailers are dying for your product. All done right? Nope. Read on for the most important stage of product development: pricing!Understand All Your Costs

When you are looking at how much to charge for a product, it’s far more than just the cost of the materials that go into your product. It’s also the sourcing and assembling, the packaging, the shipping, etc.Consider the quantity – if there are more or less volume being produced, will your costs go up or down?What is your overhead to produce these items? Salaries, rent, subscription services, and so on.

Know Your Target Audience

Is this an essential item and customers will ignore the price?Will your customers work hard to find the cheapest available?

Consider Your Competitors And Where Your Product Fits

Is your product the best quality that’s available?Does an existing brand have a monopoly on the market (e.g. Kleenex)What niche are you striving for? Premium or Great Value? Think about the classic marketing tiers of Gold, Silver, or Bronze? Does your product fit nicely in the middle?

Understand The Value The Product Is Providing

Ask your customers, what is too much to pay for this product?What if you charged double and still sold as many?Is there a dollar amount connected to the savings or productivity that your product provides?

Consider Additional Costs On Your Item

  • Taxes and shipping.
  • Do you price your item so it includes these items?
  • Does the price round to an even number or a .95?

Gain access to over 100k brands and retailers via Venzee's Certified Network.

5. Better consumer engagement requires more data.

“Rising customer expectations for seamless brand experiences underscore how important it is for commerce solutions to work together more closely than ever to harmonize information across systems and touchpoints.” - Brendan Witcher, Forrester Research.

As consumers drive the market, companies must consider how to better collect, manage, and analyze the data from consumer engagements. In most supply chains, this data is relegated to silos by organization, and often further siloed within organizations by department or function. The lack of connectivity makes it impossible to analyze data effectively, let alone action any learnings from the data that would improve brand experiences across systems and touchpoints.

Connectivity empowers brands, manufacturers, suppliers, and retailers to share data across organizations seamlessly, enabling them to respond to learnings with urgency with unified strategies to improve brand experiences across the entire customer journey and impact business results in a measurable way.

6. Organizations can’t respond to change fast enough.

Rolling out changes in retail supply chains that are made up of numerous external relationships takes too long. With the volume of data increasing as well as the number of parties involved (both internal and external), the challenge becomes even more complex. A key limiting factor in retail’s response time is the speed with which organizations can distribute product data.

And when unforeseen external factors come into play, brands and retailers must deal with the fall out, often to the tune of millions. For example, In October 2018, the US Postal Service announced an increase in rates to send packages. Credit Suisse analyst, Stephen Ju, reported this hike could cost Amazon between $400M & $1.1B, which doesn’t include the cost of system-wide price and third-party site changes (CNBC). How will Amazon scale these changes?

Competing and succeeding in retail requires agility. Brands and retailers must be positioned to respond actively to consumer data and analytics.

Connectivity enables rapid delivery of information and feedback across supply networks, and intelligent content distribution supports the growing range of product information standards and facilitates compliance with numerous regulatory standards and content quality and completeness requirements set by retailers.

7. Data bottlenecks prevent growth.

Retail’s data needs are growing, and reliance on manual processes prevents retailers from growing to meet consumer demand. Here are a few obvious areas where scale comes into play:

  • More products and more SKUs
  • More data attributes per SKU
  • More frequent changes to retailer data requirements
  • Increased volume of information being exchanged
  • More frequent updates to product information
  • More data being passed with each update
  • Brands and suppliers are selling to more retail channels

In each of the above examples, retail requires streamlined processes to manage product data. Without connectivity, retail can’t grow. Venzee offers connectivity that positions brands, manufacturers, suppliers, retailers, and technology partners to manage growth in all of these areas.

Connectivity facilitates scale. Period. Replacing manual steps with connectivity removes any limits on the speed of data exchange between trading partners. Once speed is no longer an issue, enterprises can evolve to become more adept at managing data and responding to the market.

Venzee’s API-driven solution provides the connectivity that retailers, suppliers, and content management systems need.

Venzee is solving the retail industry’s product data challenges with our intelligent content distribution platform that facilitates API-connected supply networks.

Venzee's Mesh-based Product Network
Venzee provides the digital core needed for better-connected supply networks.

Venzee facilitates the seamless connectivity that modern retail requires. With an API-driven, intelligent content distribution platform, Venzee is the easiest way for content management systems to connect to thousands of retailer channels.

With Venzee’s API solution, organizations can benefit from the following:

  • Consistent data everywhere
    One-to-many — Starting with a single source of truth, Venzee transforms and distributes product data to all desired sales channels.
  • Ability to meet changing demands effortlessly
    Venzee monitors data requirements, so retailers always receive data from brands that’s complete, accurate, and error-free. Buyers are happier and products get to market faster.
  • Future-proof, adaptable and lean technology solution
    Venzee’s pure-play, API-driven solution lets data management providers add content distribution functionality that adapts to market needs with minimal resources.

Serving as the infrastructure for the seamless exchange of product information, Venzee securely connects the data management technology of retailers, brands, and distributors, and their enterprise software partners via a single API. Our intelligent distribution platform transforms and delivers product information for over 20M SKUs across hundreds of unique formats to destinations like Amazon, Walmart, Costco, Home Depot, and Overstock.

Improving the way your business handles product information will set your business apart and help you scale.
Book a demo to explore more
Share on

Related Articles