
Q: Weβre launching new products, and weβre a new-ish brand. We donβt have a clear strategy for pricing, and the more we learn the more of a minefield it seems. How do we land on a pricing strategy that works for our brand and our bottom line, but also works for our customers β especially when consumer finances are uncertain since the pandemic, and prices across industries are rising?
Pricing is one of those topics that sits at the nexus of uncomfortable and long-term, which means companies often donβt think about it for far too long. Even when they eventually figure it out, they donβt touch it again for years. I asked the people with the knowledge for their opinion: Brand builders like Matt Teri, Co-Founder of menβs cosmetics brand Huron, KristianΒ JΓΈrgensen, CEO of Danish manufacturing company LastObject, Kyle Huston β Product Director at San Diego-based biotech firm Genomatica, Jordan Erskine, and Co-Founder of Utah-based turnkey manufacturer Dynamic Blending.
First up, let me reassure you that product pricing doesn’t have to be a minefield. Not to get all agony aunt on you, but it sounds like you need to simplify β and accept that you canβt factor in every possible eventuality that might affect your customersβ personal finances. Start with your bottom line and a review of competitor product prices, and work from there.
Having said that, getting the price right is really important, because it can make or break a product (and a brand).