As for how the product should be priced, I believe it is a question that every product manager will encounter in the later stage. When doing product pricing in the past, it seemed to be determined in a daze, and there was not much method and logic.
Recently, I was researching how to price Buy email list products scientifically, so I read the book "Priceless" , and also read the articles and courses of Mr. Liu Run.
After reading it, I have some ideas on how to price, so today I will share with you my understanding of pricing, that is, the logic of pricing.
First, let's clarify the following two concepts:
Commodity cost: Commodity cost not only refers to the material cost of a product, but also includes product development costs, marketing costs, warehousing and transportation costs, pre-sales and after-sales costs, etc. After these costs are allotted to each product, the sum is the cost of the commodity.
User value: User value refers to the cost that a user is willing to pay in order to solve his problem or need.
The purpose of pricing is to find the price point that maximizes the overall benefit between commodity cost and user value .
In the process of finding this price point, the first thing that is clear is the lower limit of the price , which is also the point of commodity cost + social wage . Social wages are a point of view mentioned by Mr. Liu Run, and interested friends can search for it.
The ideal pricing state is to clarify the value of users and get the highest point that users are willing to pay for. Then combine the highest points of different user values and different user bases, and choose the price point that maximizes the benefits.
However, this point is usually difficult to obtain, and even the user himself does not know how much this point is?
At this time, there are two paths for price makers to take. One path is to test out the user value. What is the corresponding maximum price point?
Speaking of this, it suddenly occurred to me that in 2013/14, Lao Luo said that the price of mobile phones would not be reduced, but later Lao Luo broke his word and reduced the price of T1 mobile phones by only 1,000 yuan.