{"id":82775,"date":"2024-09-10T15:10:05","date_gmt":"2024-09-10T14:10:05","guid":{"rendered":"https:\/\/www.prodpad.com\/?p=82775"},"modified":"2025-01-13T16:24:44","modified_gmt":"2025-01-13T16:24:44","slug":"product-price-testing","status":"publish","type":"post","link":"https:\/\/www.prodpad.com\/blog\/product-price-testing\/","title":{"rendered":"Product Price Testing: How to Know When the Price is Right"},"content":{"rendered":"\n

Are you charging the right price for your product? Are you super-duper sure that you\u2019ve gotten your price strategy right? If you have even a sliver of doubt, then it might be worth doing some product price testing. 

Look, it\u2019s hard to land on the perfect price point for your product. It\u2019s often said that you rarely get your pricing right, it\u2019s a case of trying to get it less wrong. Because nearly all markets and customer needs are in constant flux – what worked one year, might not land well the next. But your pricing is one of the fundamental levers you have at your disposal to make a significant impact on your revenue and profit. So it\u2019s worth taking the time to test.

A lot of businesses can be reluctant to play around with their pricing. Many product and commercial leaders can suffer from a \u2018set and forget\u2019 mindset when it comes to product pricing. That can quickly lead to prices being outdated and poorly reflect your value proposition, your growth or the market. 

It\u2019s said that an average business alters its pricing only once every three years. This is leaving money on the table! Many pricing experts, like Patrick Campbell<\/a>, suggest you should look to change your pricing once every three months! \ud83d\ude31 

Sometimes you might find that your entire product pricing strategy<\/a> or pricing model is flawed. Sometimes the overall strategy is solid, but the actual price points might need adjusting. The results of product price testing can be varied, but it\u2019s important to make a start and see what the findings are. Let\u2019s get the test tubes and beakers out and do some product price testing to help you discover the approach to pricing that works for you. 

Haven\u2019t got a clue what a product pricing strategy is? We\u2019ve got an in-depth article about your main options and how to successfully change between them. It\u2019s worth reading so you\u2019ve got baseline knowledge of what we\u2019re talking about here.<\/p>\n\n\n\n\n

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Product Pricing Strategies: Choosing the Right Approach for You<\/p>\n <\/div>\n

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Why should you run product price testing? <\/h2>\n\n\n\n

Imagine you\u2019re baking a cake. You wouldn’t just throw it into the oven without checking it and measuring its progress with a timer. The same goes for your pricing. Product price testing ensures that your pricing is right – stopping you from scaring customers away with a large price tag that makes them nervously look for the \u2018cancel subscription\u2019 button.

Conducting product price testing helps you be confident that you\u2019re pitching your product at a price point that accurately reflects its market perception and value proposition<\/a>. How much your product is worth will change as it and your product grows, so you need to monitor this and stay aware of any big changes. 

Let\u2019s illustrate this with a story:

Say we start a new side business – go us\u2728 – and release a new product. Let\u2019s say a video streaming service called ProdTV, where users can watch our great catalog of webinars (which you can check out below) alongside other blockbusters.<\/p>\n\n\n

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Browse our on-demand webinars. <\/p>\n <\/div>\n

\n Watch now<\/a>\n <\/div>\n<\/div>\n\n\n\n\n

Now as ProdTV is new, and because there are already a few industry giants knocking around showing the latest movies and must-see TV, ProdTV decides to follow a competitor-based product pricing strategy and undercut the market, charging less than these big players. 

Now let\u2019s say over a few years, people grow to love ProdTV. It\u2019s got an equal viewership to the competitors and has managed to bag some exclusive, high-rated content that everyone is loving. Shows that are so good that people are willing to pay way more than the original budget-friendly price to watch. Do you think sticking with that budget price point is still right? 

Of course not. Now it\u2019s time to change the pricing, and perhaps follow a value-based product pricing strategy that positions ProdTV as a premium option. Product price testing allows you to not only see when it\u2019s right to switch things up, but it can also help you determine what the best prices are. 

Because if we go back to that example, and decide to increase the costs to where it\u2019s way more than other streaming services, ProdTV may start to alienate existing customers and lose viewership quickly. Without effective product price testing, ProdTV could get the change wrong, piss all their viewers off, dramatically lose revenue, have their exclusive shows canceled, and die a horrible death. 

Now, don\u2019t worry, we won’t be launching ProdTV any time soon, but if we were, we\u2019d be using product price testing to make sure that we find that pricing sweet spot. A full list of reasons to test your product pricing includes:<\/p>\n\n\n\n