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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
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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?

Venzee is the easiest way to connect to retailers

AH: Ok, I get it, but isn't "content syndication" something that standards-based data pools solved decades ago?

JA: Good question but sort of like suggesting the covered wagon solved for the challenges of distributing physical goods. Times change and needs change. But, let me give credit where credit is due. In 1974 a number of innovative organizations came together to prove that with a machine-readable barcode and access to an organized data structure, the process of grocery check-out could be made more efficient. And, in June 1974, at Marsh’s Grocery in Troy, Ohio a pack of Wrigley gum was accurately scanned at check-out. Amazing stuff. Innovative. Transformational.

But we're in a different world today. That pack of Wrigley gum sits in the Smithsonian and Marsh's went bankrupt in 2017. Yet the organization - and the data structures supporting that transaction some 50 years ago - still persist today in the form of a standards-based database that needs to "synchronize" globally on a nightly basis. Brands, manufacturers, and retailers reliant on that sort of outmoded technology (and there are tens of thousands) are now challenged - and candidly, failing - to provide the type of rich, engaging, actionable data today's consumer demands.

Venzee was built in an era of cloud databases that persist globally with no need to "synchronize." We are API - which is code for “easy to connect with” - on inbound and outbound transactions. And, we leverage deep learning and other advanced tech to recognize, communicate, and resolve anomalies across the whole of the content distribution system.

AH: Impressive. But what does that mean for growth at Venzee?

JA: There are significant implications. Our goal for 2019 is to continue to grow our partner relationships and improve their clients content distribution. We are in the process of integration with our announced partners and expect those to go live.

And, while I don't have a crystal ball, I can tell you that our partner discussions and current engagements all tell us the content distribution pain Venzee eliminates is a critical challenge their clients need resolved to remain competitive.

If that is true - and I believe it is - then Venzee, as a modern, pure-play content distribution solution, is well positioned to facilitate the digital connection between brands, manufacturers, retailers, and consumers on a global scale. I don't exactly know how to assign a value to that statement, but if the choice for a brand or retailer today is between tech in the Smithsonian or Venzee, Venzee wins every time.

AH: Many thanks for your time John,

Please don't hesitate to reach out to me with any further questions or comments.

Arlen Hansen, President, Kin Communications Inc.

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