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Sunday, September 1, 2019

Determine the Value of Your Product Through Price and Feature Comparision

Product value is inherent in the cost, design and utility of an item. Value is somewhat subjective because it is influence by the fluctuations in market demand. If you are selling a product and desire to to figure out its $$$ market value then you will have to do some type of market comparison. Be advised that are lots of different ways to evaluate a product and you would do well to go exploring. A simple evaluation of how your product compares to other products on the market can tell you an awful lot about its opportunities for success.

The market and what customers are willing to purchase makes a key difference in the overall ability to sell the product for a reasonable value. As those who sell products on Amazon know, if your product isn't close to the lowest then you are not likely to make a lot of sales. The instant price comparison makes differentiation between locations difficult.

You Can Compete Beyond Low Price

Most consumer gravitate toward the lowest price and others toward convenience. People who have an interest in certain features are going to keep their eyes open for them on the market and are willing to pay a premium when they find them. Determine if you are going for low price or a more value oriented approach.

Let us say that you are selling a hammer handle and claim that it is the strongest handle on the market. That will have some value to people who use and buy hammers for industrial purposes. There will also be those willing to pay more for quality because they use these hammers a lot.

One of the ways to do this is to compare products that have similar advantages to see if they are selling higher than others. You will need to benchmark the average and then see the improved price differential when compared to other hammers. Perhaps this is $3 on the market. That will give you some indication that hammers that are strong sell at a higher price range.

How do you find this online?

You can conduct your own analysis by searching around stores, Amazon, Ebay, Alibaba and other sites to see the price. You may be able to then adjust the value from this benchmark based on how it compares. If your product offers improved quality then you may want to add to the price and highlight the value.

The same type of comparison can be conducted with specific features of products. It would require a lot more information and data to complete but is beneficial for putting dollar signs to specific features. Those features have value for consumers and the market will determine how much people are willing to pay.

Be Flexible with Your Price

While you may want to start high in price and claim your product is the best it isn't likely to go far unless you can vividly show its exclusivity. Otherwise, you may follow a market entry strategy where you lower the price of your product in order to speed up production and introduce the product to the market. When demand rises you can charge a higher price in the future.

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