Pricing your engineered application is a complex process. There are many factors involved in a pricing strategy that boosts sales and revenue. First of all, you must understand the market. You may have already done some research to determine how much customers are willing to pay and what your competitors are charging.
If so, your next step is to choose a pricing technique. You should either add a “markup” to product costs or determine your price based on the value customers place on your product.
Whichever strategy you choose, you must be aware of your overall costs, including all the money you spent developing and manufacturing your product. When you add these costs together and divide by your total number of units, you get the price you would need to break even.
It may be necessary to price your products differently depending on what region your market is located within. Industry knowledge is helpful in this area. If your prices seem too high based on what your regional competitors are charging, you may need to find a way to cut back on your costs so you’re able to compete with a lower price.
Raise The Value Of Your Product With Lithium-ion Batteries
To provide value, you must be sure you are offering a high-quality product. Perhaps your engineered application has a competitive edge on other products in the marketplace. One way to boost your product’s value is by making the switch to lithium-ion batteries.
Customers associate premium lithium batteries with a premium application. A rechargeable lithium-ion battery elevates the reputation of your product through positive customer reviews, expert reviews and word-of-mouth recommendations.
How does lithium technology raise your product’s value? The following qualities of lithium-ion batteries improve product performance and customer satisfaction:
- Lightweight
- Smaller battery size
- Quick battery charging
- Low maintenance
- Safe
- Longer battery life span
Factor Lithium-ion Batteries Into Your Product Pricing
A longer battery life span is perhaps the best example of how lithium batteries add value to your product. Customers don’t have to replace their batteries as often, which ultimately saves them money in the long-term.
Some customers understand the benefits and why lithium-ion batteries are worth the initial investment, but others are not yet aware of a lithium battery’s value.
You should also work with your retailers to develop pricing plans for your recommended lithium battery if batteries are sold separately from your product. While the upfront cost of a lithium-ion battery is somewhat higher, customers are able to spread out payments so your battery – and your product – are more affordable.
Once you take the value of lithium-ion batteries into consideration, you’re able to charge a higher price for your lithium-powered application. While it’s true that your costs may increase slightly when using lithium, selling a more valuable product helps you improve your margins and generate revenue.