Product Planning for the U.S. Market
Describe your products in terms of the customer problems that they solve and other benefits the products offer. Identify how the Product features and other capabilities directly contribute to those solutions and benefits.
Include a description of how your products are used by an end user. Indicate why your product is easy to acquire and use and how their ease of use is superior to the use of other providers’ products.
In 25 years, Amazon has built a USD $250 billion annual revenue based on the value of easy (easy find, order, ship, return) that is better than any other retailer. And, Amazon makes it easy for their product suppliers as well.
As your business grows to a significant size, you may be able to establish a widely recognizable brand. Build your business with an eye toward creating a brand and brand platform that conveys a clear value proposition. In the meantime, prospects and customers will associate your business and your products with that value proposition.
Establish your pricing strategy. Are you priced versus your competitors at a premium, the same or as a discount to the typical industry price level?
Determine your pricing strategy, structure and levels including any discounts. Include non-recurring and recurring charges. Does your pricing strategy and include aspects such as “anchor” pricing (seed desired price with a larger number), “charm” pricing (ending in “9”), “Freemiums” (free alternatives or free trials), straightforward simple pricing (may match a message to customers of your offerings being simple)? Will you provide financing for customers?
Specify the role of your pricing plan in your overall business strategy and marketing plan. Identify the advantages of your pricing structure.
Define any pricing experimentation you plan to conduct. Following is one example of a pricing experiment:
• 3 different plans/packages; intention is to sell the middle one.
• The first plan is a decoy. It’s similar to the middle plan but offers less value while costing almost as much.
• Second plan, the one you want to sell, offers good value for money. The price ends with 9. States that it has been reduced from a previously higher price.
• Third plan is to serve as a contrast to the middle one, it is a high figure as an anchor. It is much more expensive than the middle plan. You don’t actually intend to sell it, but make sure you can deliver it if someone purchases it.
Continually evaluate how your pricing structure and levels compare to those of other providers with which you compete.