One of the most challenging questions in managing new products to market is how to decide the optimum price.
This is even more vexing in situations where the benefit of the new product is a significant step forward compared with alternatives, and from a relative/rational perspective, should be valued proportionately higher.
The most critical piece of evidence in this situation is the price demand curve – a simple graph that shows the relation between price and uptake – from which it is possible to discern an optimum position that translates into share and margin.
The problem is that most pricing tools that create a price demand curve need to start with assumptions about the price that is being tested, and in this situation this is exactly the one piece of information that is unavailable. The price of alternatives may be clear but the problem may be that the new product should be worth more but no one knows how much more at this stage.
The Research Engine NEW PRODUCT PRICING tool is a unique hybrid of existing tried and tested price methodologies that have been available to marketeers for many years. Hybrid pricing techniques from Research Engine take the best features from well established industry tools such as Van Westendorp, Kaiser, Brand Price Trade-off and Gabor Grainger, Turf etc.
This example creates a price demand curve generated entirely by the respondent, entirely free from brand owner assumptions that can a bias the outcome.
If you cannot find an off-the-shelf product solution to meet your requirements we offer two great additional solutions:
- CUSTOMISE OUR EXISTING PRODUCTS We are happy to take our standard products and customise them to your precise requirements (e.g. by adding extra questions or changing questions). This can be a very fast and cost-efficient way for clients to reach a perfect solution.
- COMMISSION A CUSTOM PROJECT We frequently carry out a wide range of custom research projects for clients – so whatever your needs please ask us.
In either case please either use the “Custom Research” option in the footer of this page OR email Chris or Mike directly with your questions: