Array
(
)
        

Pricing New Product Innovations

Pricing New Product Innovations

Businesses have difficulties evaluating pricing success. Most pricing managers concur that the process employed for determining prices are ad-hoc and ineffective. Yet, most would agree that knowing the price of one’s competition is essential. Not only do these competitive alternatives help set buyers’ reference prices, they shape the competitive landscape. Pricing products and services relative to competition also has its limitations, from the possibility of starting a price war to the danger of positioning the new product/service as undistinguishable.

What happens when there are no existing competitors? How should one determine the first product of its class? How can a business communicate value to buyers when there is no comparable?

This is an issue that plagues many start-ups as well as companies with innovative products that are substantially different from anything else currently available in the market. Given the high rate of new product failures, often due in part, to pricing mistakes, how to price new product innovations is of particular importance to firms and their new product viability. We will examine the process of pricing new product innovations using actual examples as well as offer participants an opportunity to apply the process in an exercise.

Level 200 course

(Tuesday, October 24th)

Attendees will learn:

  • How to determine the value of the new product innovation to the buyer

  • The importance of establishing, nurturing and maintaining buyer perception of value

  • How to ascertain a proper pricing structure and price level for the new innovation

Lillian Cheng

Partner, Cheng Monroe and Associates

View Bio

Dr. Kent Monroe

Partner, Cheng Monroe and Associates

View Bio