The most critical component to successfully market a product is price determination. Correctly pricing a product requires extensive research in the target market to confirm the pricing of substitute and complementary products. Local economic factors and market forces cannot be ignored and must be monitored on a continuous basis to ensure pricing is accurate.

Engage the services of a price determination expert who is familiar with your industry. These professionals are able to provide detailed analysis, expertise and adjust pricing as the market forces move. They can also provide quarterly updates on pricing to using a profitable pricing policy is in place. The best way to achieve a strong, profitable pricing strategy is to:

1. Determine your price determination requirements.

2. Locate a suitable price determination expert.

3. Implement price determination information.

Action Steps
The best contacts and resources to help you get it done

Create a list of price determination factors

Make a list of the direct and indirect costs related to the production of one unit of your product. Use an activity based costing model to ensure the method of valuation is correct. Consult with experts to get price determination advice.

I recommend: Skilled analysis and pricing experts are critical to obtaining the best pricing determination for your market and product offering. Simon Kucher is a well known company that specializes in price determination consulting work. The Foundation Group provides detailed assistance specially tailored to your industry and location.

Work with a consultant to obtain price determination

Price determination is a specialized field that requires a background in accounting, marketing and analysis. To yield the greatest ROI, prepare an analysis and aging of the product pricing, costs and profit margin over a set period of time. Provide this data to the price determination consultant to speed up the process.

I recommend: Using the services of a skilled consultant for price determination provides a solid foundation for ongoing profitability. Mimiran provides price determination experts to set the correct pricing for maximum profitability. Strategic Pricing Group is a well established company with many years experience in pricing consulting to ensure profitability in the long and short term.

Set the price using price determination information

Comparison shop for similar products in the target area. Set up consumer focus groups through a marketing agency to get feedback on several different price points. Arrange for price determination advice from experienced consultants to maximize your time and efforts.

I recommend: Contact Pricing Strategy Associates for hands on assistance in price determination strategy. While there, sign up for a newsletter, purchase books or sign up for a mini course on pricing. To access a directory of price determination consultants, review the list provided by Pricing Strategy Resources.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  When looking for price determination advice, ask for references and contact them. Ask about the success of the pricing strategy and long term impact on sales and profits.