You don’t have to compete on price. So, why do you?
Market penetration? Maybe it’s because it seems to be the easiest way to get into the market. Or fear. Afraid you will be undercut and your prospect will not perceive enough of a difference to pay more. Price can indicate your product is scarce or plentiful. Price tells the consumer a lot about what you think about your product or service. Price even affects what your prospect thinks of your product. Setting your price is a critical decision. But before you begin pricing review your marketing mix— the 4P’s, product, price, place, promotion; and I always include positioning--position product for marketing. What is your position? Product positioning is what comes to mind when your target market thinks about your product compared to your competitor’s products.