Price-wise Pinoy: Tips Sa Tamang Presyo Ng Paninda.

Summary

In this video, the host emphasizes the critical role of pricing in business success, focusing on positioning, customer perception, and market share. They advise entrepreneurs to conduct cost analysis, set a desired profit margin, and perform competitive analysis to price products competitively. The host also stresses understanding the target market's purchasing power and the importance of a unique selling proposition. Practical tips are shared for startups to price their fast-moving consumer goods effectively, aiming for a balance between affordability and profitability.

Takeaways

• 😀 Pricing is crucial for product positioning and understanding the target market.
• 😉 The price of a product influences customer perception, with lower prices often associated with lower quality and vice versa.
• 💡 Correct pricing can lead to increased market share and higher income for the business.
• 🔍 Customer loyalty is fostered when customers perceive the product as a good value for money.
• 📈 Word of mouth recommendations are more likely when customers are satisfied with the pricing and quality of the product.
• ⬆️ A competitive pricing strategy can help a business become a market leader in its industry.
• 🚫 Incorrect pricing can lead to reduced market share, lower sales, and missed growth opportunities.
• 👀 A case study of Shaquille O'Neal's experience with Reebok highlights the impact of pricing on customer accessibility.
• 📊 For new entrepreneurs, practical tips include conducting cost analysis, determining desired profit margins, and performing competitive analysis.
• 🎯 Identifying the target market's purchasing power and conducting market research on similar products is essential for setting the right price.

Q & A

What is the importance of pricing a product correctly?

Pricing a product correctly is crucial for positioning, perception, market share, and profitability. It helps determine the target market, influences customer perception of quality, and can affect market share and customer loyalty.

How does pricing affect the perception of a product's quality?

A product priced lower may be perceived as of lower quality, while a higher price can suggest better quality. However, the target market's purchasing power and the product's unique selling proposition (USP) also play significant roles.

What is the role of market research in determining the right price for a product?

Market research helps identify the target market's purchasing power, understand competitors' pricing, and assess the market for similar products. This information is vital for setting a competitive and effective price.

Why is it important to consider the target market's purchasing power when pricing a product?

Considering the target market's purchasing power ensures that the product is affordable to the intended customer base, increasing the chances of sales and market penetration.

What is a unique selling proposition (USP) and how does it influence pricing?

A USP is a distinctive feature or benefit that sets a product apart from competitors. If a product has a strong USP, it may be priced higher because it offers something unique that customers are willing to pay for.

How can a company ensure its product is priced competitively?

A company can ensure competitive pricing by conducting cost analysis, setting a desired profit margin, performing competitive analysis, and adjusting the price based on the target market's purchasing power and the product's USP.

What is the potential negative impact of not pricing a product competitively?

Not pricing a product competitively can lead to reduced market share, missed growth opportunities, and difficulty in expanding the business due to lack of sales and customer interest.

Can you provide an example from the script about the consequences of incorrect pricing?

The script mentions Shaquille O'Neal's experience with Reebok, where he terminated his agreement after a mother complained about the high price of his shoes, leading him to create his own affordable brand.

What are some practical tips for pricing a product competitively as mentioned in the script?

Some tips include conducting a cost analysis, determining the desired profit margin, performing competitive analysis, identifying the target market's purchasing power, and considering the product's USP.

How can a company adjust its pricing strategy if the market does not respond well to the initial price?

If the market does not respond well, a company can offer discounts, re-evaluate its pricing based on competitive analysis, or adjust its target market to better align with the product's pricing.

What is the significance of the final price in a pricing strategy?

The final price is significant as it determines the product's market acceptance and profitability. It should be set considering the target market's price expectations and the product's value proposition.

Outlines

00:00

💼 Pricing Strategy for Business Success

The speaker emphasizes the critical role of correct pricing in product positioning and market perception. They discuss how pricing can affect market share, customer loyalty, and ultimately, business growth and profitability. The importance of understanding the target market's purchasing power is highlighted, and the speaker shares a story about Shaquille O'Neal to illustrate the consequences of mispricing. The narrative suggests that competitive pricing is essential for market share and business growth, and it provides practical tips for entrepreneurs to price their products effectively.

05:01

📈 Competitive Analysis and Market Research for Pricing

This paragraph delves into the practical aspects of competitive analysis and market research for setting product prices. The speaker advises on conducting cost analysis, determining desired profit margins, and comparing prices with competitors to ensure competitiveness. They stress the need to understand the target market's purchasing power and to identify the unique selling proposition (USP) of the product. The speaker provides an example of their own pricing strategy for books, targeting the middle class, and suggests starting with a competitive price and adjusting based on market feedback. The paragraph concludes with an invitation for questions and a reminder of the importance of pricing in product launch and business success.

Keywords

💡Pricing

Pricing refers to the process of setting the price at which a product or service is sold to consumers. In the video, pricing is crucial for product positioning, customer perception, and market share. The speaker emphasizes the importance of pricing competitively to avoid losing potential customers who cannot afford the product. An example from the script is the discussion on how setting the right price can lead to increased market share and customer loyalty.

💡Target Market

The target market is the specific group of consumers towards whom a product or service is aimed. In the video, understanding the target market is essential for setting the right price and ensuring the product is affordable for the intended demographic. The speaker mentions that if the target market is misidentified, the product may fail, as it might be priced beyond the affordability of the desired customers.

💡Positioning

Positioning in marketing is the strategy to create a distinct image of a product in the minds of the target consumers. The video discusses how pricing affects the positioning of a product, as it can influence whether the product is perceived as high-end or budget-friendly. The speaker gives an example of how a product priced too low might be seen as of lower quality.

💡Perception

Perception refers to the way customers interpret and understand a product based on its price and other factors. The video script mentions that the price of a product can shape customer perception, with higher prices often associated with higher quality and lower prices with affordability.

💡Market Share

Market share is the portion of the total market for a particular product that is controlled by a particular company or brand. In the video, the speaker explains that getting the price right can help increase market share, as it allows a company to reach more of its target market and potentially increase sales and revenue.

💡Profit Margin

Profit margin is the percentage of sales that is retained as profit after accounting for all the costs associated with bringing the product to market. The video script discusses the importance of considering the desired profit margin when setting the price of a product, as it directly impacts the financial success of the business.

💡Competitive Analysis

Competitive analysis is the process of evaluating the competitive environment and identifying the strengths and weaknesses of competing products or services. The video emphasizes the need for competitive analysis in pricing, suggesting that understanding the pricing strategies of competitors can help a business price its products competitively and avoid overpricing.

💡Purchasing Power

Purchasing power is the ability of consumers to purchase goods and services. The video script mentions the importance of understanding the purchasing power of the target market when setting prices, as it determines whether the target audience can afford the product at the set price point.

💡Unique Selling Proposition (USP)

A unique selling proposition is a marketing technique that focuses on the unique features of a product that distinguish it from competitors. In the video, the speaker suggests that having a USP can justify a higher price for a product, as it offers something that competitors do not, thus providing a competitive advantage.

💡Word of Mouth

Word of mouth refers to the informal exchange of information by spoken communication between people. The video discusses how a product priced right can lead to customer satisfaction, which in turn can generate positive word of mouth, helping to increase sales and brand reputation.

💡Discount Strategy

A discount strategy is a pricing tactic where a product is initially priced higher and then discounted to attract customers. The video script provides an example of how offering a discount can help a product reach its target market if the initial price is not attractive to the intended customers.

Highlights

The importance of correctly pricing products for market positioning and to avoid failure.

Pricing affects customer perception: low price may imply low quality, high price may suggest high quality.

Correct pricing can lead to market share and increased income.

Customer loyalty is linked to pricing, especially for value-conscious buyers.

Word of mouth recommendations are more likely with properly priced products.

The negative impact of incorrect pricing includes reduced market share and missed growth opportunities.

A story about Shaquille O'Neal's experience with pricing and its effect on his endorsement deal with Reebok.

Tips for beginners on how to price products competitively in the FMCG sector.

The necessity of cost analysis in determining the production cost of a product.

Understanding the desired profit margin is crucial for pricing strategy.

Conducting a competitive analysis to adjust pricing in comparison to the market.

Identifying the target market's purchasing power is key to setting the right price.

The importance of a unique selling proposition (USP) in pricing strategy.

A suggested pricing strategy for new products to enter the market effectively.

The significance of pricing in the context of launching a successful product.

Invitation for questions and further discussion on the topic of pricing for future videos.

Transcripts

aalamin po natin yan kasi kung nagkamali

kayo right from the start naku failure

na

yan yung mga target market mo kahit na

gusto niyang bilhin ng produkto mo but

cannot

afford videos that will make you wealthy

and Deb

free curious ka ba kung paano mo malaman

kung paano mo prey uhan ang produkto o

tinitinda mo kung yan ang tanong mo at

nais mo ito ang video na hinihintay mo

hi there shinkan your pambansang world

coach super excited po ako para sa mga

kapwa nating mga entrepreneurs at the

same time gustong magnegosyo usapang

presyuhan po tayo Paano kayo kumita

paano ba maglagay ng tamang presyo Ano

bang masamang epekto sa negosyo kung

mali ang inyong pagpepresyo okay Kaya

umpisahan na po natin alam mo

pagpepresyo ng produkto is very

important no ah Bakit number one it's

for your positioning positioning

purposes no parang Min si positioning

purposes para malaman mo sino ba talaga

ang target market mo ang target mo ba

yung masa ah Tapos or ung middle class o

yung mga mayayaman aalamin po natin yan

kasi kung nagkamali kayo right from the

start naku failure na yan number two ang

pricing R also forms what we call yyung

perception ng iyong customer Syempre ang

isang produkto ah pag pinasan natin na

medyo mababa Ay syempre sabihin namga ay

naku mura yan sirain yan pag pinosohan

mo naman mataas ' ba ay sabihin ay naku

quality yan pero again Depende ha kung

sinong target market mo and then number

three ang kagandahan Pag tama ang presyo

ng produkto mo youl be able to get

market share Min market share Eh syempre

makukuha mo yyung target market that you

want to reach e and then pag dumami ang

market share mo Syempre ibig sabihin yan

e tataas ang income mo pangapat ang

kagandahan din dito since naalam na alam

mo yung target market mo based on your

market yyung price Eh magkakaroon ka ng

customer loyalty lalo na yung mga

tinatawag nating sulit buyers and then

natuwa sila sa presyo ay sobrang sulit

Ong product na ito magkakaroon ka ng

word of mouth recommendation and ang

ending yan syempre tataas ang kita mo at

syempre naman eh Ikaw yung magiging

number one Oo number one sa iyong

industry at I'm sure Lahat naman tayo

gusto natin maging number one ' ba Ano

naman ang magiging ano ah negative

repercussion if you don't price your

product competitively number one ito

Syempre mababawasan ka ng market share

Syempre wala kang benta o if not naman

wala kang kita o not only that yung mga

target market mo kahit na gusto nang

bilhin ng produkto mo but cannot afford

' ba Naalala ko tuloy yung ano eh ah

yung parang kwento ni shakil o'neil nung

nagawa siya ng isang ano endorsement

para sa isang shoe brand na Rebook Oo at

nung kinuha siya $0 per shoe a 1990 yun

Tapos may isang isang nanay talaga o

2000 yata n may isang nanay talagang sa

dugout sinasabi niya to sh but the price

of your shoes at Rebook is so expensive

we cannot afford it tapos alam mo sinabi

ni ano shock Binigyan niya ng $2,000

para makabili yung ano ang nanay ng ano

sapatos para sa kanak Hindi tinanggap ng

nanay saabi niya babaan mo na lang yung

presyo mo para ma-afford namin So Alam

mo ginawa ni shock naku tinerminate niya

yung agreement niya with Rebook

pagkatapos gumawa siya ng sariling brand

niya tapos binenta niya yung sapatos ni

brand niya from 15 to 0 Grabe So yun ah

talagang Napakagandang istorya niyan and

then also ah pagka mali ang pricing mo

mahirapan ka talaga mag-expand kasi wala

kang benta at the same time Syempre you

will miss on growth opportunities ang

daming mga repercussion Kaya nga kung

gusto niyo ah kung gusto niyo malaman

Paano natin puhan ng tama Eto na ito na

ito na pero bago tayo pupunta sa

presyuhan kamustahin na natin si Ruben

lad sabal Si bang carera at the same

time si Lux sarino

7211 Yes shoutout so para hindi Hindi

naman na mahirapan lalo na para sa mga

taong nag-uumpisa Okay para sa mga taong

nag-uumpisa ha Ito po Bibigyan ko na

kayo ng mga practical tips on how to

price your product competitively Let's

start with muna the fmcg ano iung fmcg

fast moving Consumer goods kailangan

muna Syempre yung mabilis mabilis mabili

' ba yung mga tubig mantika asukal Asin

mga ganon ah fmcg yan so first cost

analysis muna tayo calculate muna natin

kung magkano po ang magiging puhunan

ninyo para ma-produce niyo ang iyong

produkto isama mo na ung raw materials

ah isama mo na ung Syempre packaging

delivery marketing transportation cost

that's number one and number two alamin

mo na rin Syempre kung magkano ang gusto

mong profit margin Okay profit margin

magkano gusto mo tu buuin 10% 20% 50%

para maging compensated naman yung

effort mo Okay so that's number one

number two Gawa tayo ng tinatawag na

competitive analysis check na muna natin

ung mga market ung kalaban mo o kyan may

kalaban kang tindahan nagbebenta siya ng

isang litrong langis o Magkano naman

yung SAO magkano sa kanya ' ba

mag-adjust kayo ika nga mag-compare kayo

ng pricing para malaman mo talaga

Napakahirap kasi if you out price

yourself in the market agree mas maganda

kung competitive ka at kung mas mataas

ang presyo mo dapat meron kang

pagkakaiba na wala sila m number three

after na check na natin yung competition

para sa price no Ah pwede ka ng

mag-check ng target market di ba ngayon

iche-check mo na yung target market mo

identify mo na yung purchasing power

niya o target mo ba masa middle class o

mayaman ' ba mag-market research ka on

the similar product Ano ba Iyung price

segmentation mo Like for example ako

perfect sample I will tell you yyung mga

products na ginagawa ko specifically

with mga book ang target market ko

talaga is damasa ah kasi mga books

talaga Di ba 400 Php500 php900 ang libro

pero How many people can afford that

price so I price my may product at

Php150 Php150 ang aking products so kasi

yan ang target market ko more on the

middle class lower yan ang target mo

kayang-kaya niung 150 and then next

check also para mapr presyuhan mo tama

yung tinatawag nating usp What is your

unique selling proposition na pwede mong

ilagay sa iyong product na para ikaw

lang ang pwedeng bilhan kasi pag may usp

po Kayo kayo lang meron Pwede niyo

presyuhan ng produkto niyo na mas mataas

kung hindi nabibili at hindi kayang

i-offer ng iba yan ang isang tinatawag

nating advantage ha kaya i-check mo rin

kung may USB ka on my end talaga In

Reality ah yyung products ko

specifically may USB yan eh kasi ako

lang naman nagsulat niyan kaya wala

siyang comparison But still I want to

price my product competitively Kaya

after that ito na iyung final no ah

Iyung pricing strategy na ' ba pricing

strategy na kailangang malaman mo na ano

Ma yung final price na gusto mong

i-introduce sa market para maging

effective Alam mo ito lang suggestion ko

ah you can start really Huwag niyong

masyadong High yung talagang kunyari ang

target market mo ang target price mo

nasa Php5 pwede mong ibenta siguro ng

Php 885 ' ba and then pagka kinagat ng

market at ph8 stick ka doon pero pag

hindi kinagat ' ba since ang target na

75 sabihin mo we are giving 15% discount

para papasok ka pa rin sa target price

mo that is how you price your target

market o Guys kung may mga questions pa

kayo regarding this topic na ito itong

topic ng pricing no Please do not

hesitate Huwag kayong magdalawang isip

no ah magpadala ng message at magpadala

ng questions here para sa next video ko

iyan ang tatalakay ko pricing FYI is

only one of the most important thing in

terms of releasing and launching a

product marami pa pong ingredients at

saka mga contents na kailangan po nating

pag-aralan Para maging successful ang

inyong business