Armand’s 50 Things: Thing 18 – Make a List of My Competitor’s Price Points and Come Up With an Average
This is very important. The reason I want to do this is I want to know the high, the low and the average prices that my competitors are using. This will give me an idea as to what the market is used to spending.
When you go to price your product, this will help you know if you’re going to be in line with what’s already out there or not. You don’t want to be way beyond
what most people would want to pay, and you don’t want to be too low because you’re doing yourself a disservice at that point.
I like to price my products towards the upper end of what’s out there.
I don’t necessarily want to be the highest, but I don’t want to be the cheapest either. Normally, I come very close to the top price because people associate price with value.
Think about it; let’s say I have two cars in front of me. From the outside they look identical in every way, shape and form. One is $12,000 and one is $80,000. Which is the better car?
Most people would say the $80,000 one just because of the price.
Let’s say my wife wants one of two purses, one for $50 and one for $500. Which is the better purse? You guessed it, most would say the one for $500.
So, come up with a list of prices that are being used by your competitors, see what the average is and price your products accordingly.