Selecting the right pricing strategy involves considering several factors:
1. Market Demand: Understand the demand elasticity of your product. Higher elasticity means customers are more sensitive to price changes. 2. Costs: Calculate both fixed and variable costs to ensure you cover expenses and achieve profitability. 3. Competition: Analyse competitors' pricing to position your product effectively within the market. 4. Value Proposition: Consider the unique value your product offers and how much customers are willing to pay for it. 5. Business Goals: Align your pricing strategy with your overall business goals, whether it's market entry, growth, or maximizing profit.