Hey, product manager, Would you like to make additional money from your product? Yes, you are able to! The only thing you have to do is increase the price of your product. Do you think this might make you a little nervous? Are you worried about making your current customers and prospective customers upset with your business? I have some good news that you can raise your prices and still keep your customers. I’ll demonstrate what you can do…
Things That You Shouldn’t Do When Raising Your Product’s Price
Product managers are often somewhat nervous when they are beginning to consider plans to increase the price of their products. This is a decision that was not part of their product’s definition. Sometimes, they think they are able to think of a clever way to not alter the price that their item is sold at, instead of removing the multiple offers and discounts that their customers are making use of to purchase the product at a cheaper cost. This is not the best idea.
It is important to provide your customers with credit. They’ve got an intuitive sense of what is worth the money. If they’re familiar with discounts, sales, coupons, or other discounts that are associated with your product, but suddenly these disappear, they’ll recognize that something’s wrong. This game can turn away your most cost-sensitive customers. They could be the ones you’ve spent the most effort to convince.
Another belief the majority of managers are prone to be that they can raise the cost of their product by introducing a different product while reducing the quality of the product. This strategy is rarely successful. What happens a lot is that the less-quality product will eventually take market share away from the main product. The alternative of decreasing the amount of product offered to the client isn’t working. It’s not the quantity of product which is the source of your expenses. However, it’s the transportation and packing.
The Right Way To Raise Your Product’s Price
Since there are many different ways to raise prices for a product, What is the best method to go about it? The first thing the product manager must be aware of is that you need to inform your customers that they are charged more do not hide the fact that you are raising prices. Research has proven that consumers are willing to pay more when they appear to be fair and reasonable. If you are able to figure out the best way to raise prices in a way that is fair, then you’ll have something that you could add to the manager’s resume.
The process of raising prices for products is usually focused on timing. It means that you are able to increase prices whenever you launch new versions or a product that is already in use. The customers are likely to pay more for greater value. Also, you can increase the price of your product when the leading company in your industry raises the price of its product. Be sure to take action promptly!
Different customers are not alike. You must continue to provide your customers with special offers. The reason you’re likely to need to do this is that customers who are cost-conscious will not purchase your product unless you provide them the incentive they’re looking for. Find ways to bring your best offers into the hands of those who are most likely to purchase the products.
What All Of This Means For You
Selling your product is usually not enough for the majority of product managers. We would like our products to have a good financial return. This usually means that we could be in a position in which we have to increase the cost of our products. This is not a skill that is listed in a job description. It is important to be competent enough to be able to accomplish this without putting our customers away.
We don’t want to do end our price-sensitive customers with product discounts. Furthermore, if we reduce the standard of our products, it is possible that customers could begin to feel like they’ve been cheated. What we have to do is adhere to the market leader and increase our prices whenever they increase their prices. We must also ensure that we keep offering discounts, so our customers who are price conscious do not leave us. Also, offering different versions of the same item can assist our customers in getting the item they desire.
The positive side is that it is feasible to increase the cost of a product your company already offers. It is just a matter of being cautious when doing it. Consider thinking about the perception your customer has of your product as well as your price, and then work on to ensure that they see any price increase as “fair.” If you do this correctly, you’ll notice a significant boost for your business’s bottom line.
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