According to Forbes, pricing strategy is especially important for new and innovative products. A price too low creates an impression in the buyer’s mind of a vendor that will overpromise, while a price too high will leave them unable to afford it. Meanwhile, a price equal to the competition makes it appear as a commodity where buyers will ignore the benefits. To find the most optimal price, companies should conduct “willingness-to-pay” research to measure what the target market and early adopters are willing to pay for the new, innovative product. Companies can do this by finding 25 or more potential customers, asking questions about product expectations, and offering a range of prices.
pricing new innovative products
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