يلعب تسعير المنتج a pivotal role in strengthening a company’s position in the market and building a productive, long-term relationship with consumers. Despite this, many

من الأخطاء التي تُرتكب عند Pricing, especially when the product is new or you’re new toEntrepreneurship or small and medium-sized businesses.

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ما السعر؟

To start, we can define price as the amount of money paid to obtain a service or product. But price is more than that: according to renowned marketing expert Philip Kotler, it is

the set of values consumers exchange to own or use a product or service.

Perhaps this is what Sarah Maxwell, an expert in the field of Pricingwhen it showed that the idea of a fair price goes far beyond simply being a low price. Rather,

it means, among other things, that in return for what you pay, you are treated with the respect customers deserve.

So, price is a set of values that buyers or consumers receive before it is an amount of money they pay. Understanding this fact will help you, as an entrepreneur

or business owner, outperform your competitors and capture the market share you seek overall.

In addition, you must treat your customers fairly, understand how much they can afford, and know what value you can offer them in return.

Even so, some common mistakes are made when pricing a product. The most notable include lowering prices to gain the largest

A certain amount of sales—but the problem with this approach is that customers will get used to the low price, regardless of the product’s actual value, and therefore won’t

pay more for products with greater value and higher quality.

Another common pricing mistake is basing prices solely on costs, rather than on the value the product offers customers.

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How do you price your product?

You can set your product’s price based on what it cost you to make. This is a familiar approach, but it often comes with no guarantees, because cost is not

ultimately what determines the price. You can also price your product based on the value consumers perceive in that particular product. This

is the better approach, but it requires an in-depth study to understand how customers perceive your product.

Modern companies and organizations use two well-known product pricing strategies: Market-Skimming Pricing

and Market-Penetration Pricing. The latter strategy focuses on penetrating the market by lowering the product’s price and

offering it to customers at cost only (Cost-Based Pricing). The goal is to penetrate the market and attract as many customers as possible. The

other strategy involves addressing market segments, starting with the highest tier and moving down to the lowest, while setting an appropriate price

for each segment.

It is worth noting that a market-penetration strategy based on lowering the product’s price means that the break-even point is reached after

for a long time, and the break-even point is the stage at which product sales cover its costs without generating any profit margin.

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Is it possible to adjust prices?

The market you operate in, like markets everywhere in the world, is characterized by rapid change. Your competitors are also growing in number day by day, and all these

factors and variables, among many others, require you to stay flexible and adjust your strategies whenever necessary.

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When it comes to pricing, there are many ways to change your pricing strategy, such as offering discounts during certain

seasons or lowering the product’s price in a specific geographic area. You might also be able to raise its price by appealing to your target audience’s psychology—in other words, by increasing the

value the customer sees in the product.