Optimise your product pricing strategy
Are you looking for the best way to maximise your profits? Have you got a new product in development, but are unsure what to charge? The Vypr platform can help you with your product pricing strategy.
Product pricing is an integral part of your overall product strategy. Knowing how much (or how little) to sell your product for is a key factor in getting the most out of your NPD. Price too high, and your sales volume suffers; price too low, and you could risk cheapening your brand and losing profitability.
The Vypr approach
Vypr lets you ask consumers what they are likely to pay for your product, based on two different steers you can deploy. First, there is “referencing pricing”, where you show the consumer an existing product with its retail price, then ask how much they would pay for your product in a similar category – this could be a comparison with high and low-end alternatives.
The second steer is “qualified ‘would pay’”, which tests how much a consumer is willing to pay for your product. They are given a random price based on the parameters you choose (say £2–£6, with £4 being the ‘base’) which tests if they would pay that amount. They are then asked the maximum they would be willing to pay, from a list of options.
This uses the theory of price anchoring, where an initial price that a consumer sees tends to influence their willingness to pay. That is to say, the higher the first price they see, the more they are willing to pay overall.
Product pricing can make or break your NPD strategy, so it’s crucial to get it right. The data we can provide will help you make better pricing decisions on your products.
To learn more about you can transform your NPD strategy, download part 1 of our FREE Agile Innovation eBook series.