Description
A template designed to guide you through the intricate steps of setting prices for each product individually. Empower your pricing decisions with accuracy through predefined formulas, responding to values you input.
How it Helps
This template serves as your financial compass, meticulously guiding the calculation of product prices. By incorporating predefined formulas, it acts as a vigilant guardian, preventing any oversight of critical costs that could potentially jeopardize your hard-earned profit margin.
Benefits
- Prepare for Collaborative Product Design
- Establishes an organized framework for teams, providing a clear structure for price setting.
- Saves time for marketers and procurement departments.
- Supports the achievement of marketing and/or procurement KPIs by avoiding financial issues that may arise if prices are not well-set.Â
Time needed
3 days.
When to Use It
Biannually or monthly during each pricing review.
How to use
Incredibly user-friendly. To calculate a product's price, fill in your values in the white boxes, and, thanks to predefined formulas, the price will be automatically calculated.
Pro Tips for Optimal Utilization:
Do:
- Don’t hesitate to adjust prices if the market or business demands it.
- Don’t assume all customers are price sensitive. Showcase the value you bring.
- Conduct weekly monitoring of competitor prices.
- Employ psychological pricing strategies.
- Keep prices straightforward.
- Always test prices, especially for new products.
- Understand your costs.Â
Don't:
The price-setting formula should not be used in isolation; it should be accompanied by a well-developed pricing strategy. Teams should be mindful that the market is dynamic, and constant monitoring of price trends is essential.