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.