When designing our business we decided we would design a product that was unique, had very little competitors and provided something no one else had. This allowed us to use the pricing strategy Price Skimming. This strategy is when we set a higher price to boost profits, after research of the market primary and secondary we were able to see variety of prices set for such products in the market.
With ChildLock (our child friendly IPhone case) serving a purpose we were able to price it as high as £15. From primary research we discovered people who owned such phones as IPhones could afford to speed such money on a case and also were willing to do so. When pricing our item we took into consideration the cost of our business and the target market we were attracting. It was interesting from our price strategy lectures we were able to discover reason as to why we could charge more and how we would market the product to make our prices acceptable to our audience. We want customers to believe our product is quality their for setting a price that wasn’t to cheap allowed customer to believe this product will be worth the cost. As cheap product usually have a reputation of “you get what you pay for”. We also knew our product didn’t have a long life spam with the IPhone being upgraded to a new model every few years meant we need to cover costs of our business sooner rather than later so we could afford to upgrade our design as technology evolves.
I learnt a lot about the price of a product and how it can make or break a company. With out clear conscious pricing strategy you could seriously damage a business there for we took many days planning how we could market our product to enable us to sell it at the price chosen showing customers it is worth every penny.