| As difficult as it is to comprehend, a recession is a time | | | | it up in volume? If so, it is much better than the |
| when smart companies get creative and launch some | | | | alternative - no sales and bankruptcy court? There are |
| of their most innovative products and services. Some | | | | other things that should be going on behind the scenes |
| will even revaluate their brand and execute something | | | | to help make a move like this successful such as |
| new, something fresh. There are a lot of things that go | | | | scaled back expenses and using free mediums such |
| into a new product launch, most of which I will cover in | | | | as Twitter, Facebook and MySpace to actively |
| a later blog, but one of the most important is pricing. | | | | promote the launch. |
| I feel that I can safely assume that before any launch | | | | Third, is it something totally new that your test groups |
| or market introduction, a large sum of time and money | | | | proved to be something everyone would have to |
| goes into research and development, marketing and | | | | have? If these were the results, you are on the right |
| "beta" testing. All of these should be used as a helpful | | | | track! The good news is that everyone will have to |
| medium for discovering what your customers are | | | | have it! But, be sure that you price it so that everyone |
| willing (or not willing) to pay for - whatever it may be | | | | can afford it. Depending on what the product or |
| that you're getting ready to offer or produce. Time and | | | | service is, it is very important to consider each |
| time again I have witnessed unsuccessful new product | | | | demographic it will be offered to carefully. Is it |
| kick-offs due to poor market research or a very, very | | | | something that would fall into the "disposable income" |
| terrible pricing structure. I can understand though, there | | | | category? If it is, remember that each income |
| are a lot of things that are of concern during this | | | | demographic has its own sweet price point. That |
| process. What if you price it too low, everyone loves it | | | | means, if you price the product outside of it, they won't |
| and you're stuck with the price? What if you price it | | | | buy - regardless of how much money they have on |
| too high and there isn't enough interest for it to move? | | | | hand or how badly your study groups say they will |
| What if the price is right in-between the both and as a | | | | want it. |
| result, the product performs badly? Don't fret! There | | | | And finally, is it something that you can offer for free? |
| are answers to all of these questions but you have to | | | | Depending on the product or service, it is important to |
| ask some more before you get there. | | | | consider offering it... for free! This doesn't apply to |
| First, why did you create this new product? If it was to | | | | everything but think about this - if Twitter charged for |
| benefit your customers and improve their experience, | | | | membership or per every Tweet (oh GOODNESS), |
| price it low enough that they can adopt it without | | | | the chances of its success would have been very |
| feeling robbed. You see, when Apple first launched the | | | | minimal and it would have likely failed. Apple doesn't |
| iPhone, it decided just a few weeks later that the best | | | | charge for its iPhone software updates (except for |
| price point was $200 less. This was one of the very | | | | iPod subscribers) because they understand customers |
| few things I will condemn Apple for but they made it | | | | have a continuing cost for owning one and they value |
| right after quickly offering customers who paid the | | | | the importance the phone has on its business model. |
| higher price a $100 Apple gift certificate. The key to | | | | Apple saw the bigger picture, do you? |
| success with a product launch of this nature is to price | | | | When pricing new products or services - consider the |
| it for your customers benefit, not your own. | | | | results from your R&D, what the competition is |
| Second, are you hoping this product is going to save | | | | doing and for how much, and who your customers will |
| your company? If your company has reached this | | | | be. If you can find the right mix and do it for the right |
| point, I don't feel that a new product is all that is | | | | reasons, the chances of success are greatly |
| needed to keep your business afloat but it sure could | | | | improved. Just remember to avoid panic product |
| help. In this scenario, I suggest you carefully consider | | | | launches, plan ahead, and do your research. |
| your options. If you price it low enough, can you make | | | | |