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Setting the price of a new product is an important business decision that will directly affect the product's profits over its entire lifecycle.  If you price the product too high, you will either lose or slow sales. If you price it too low, you'll lose significant profits and revenues, and you may create low expectations of value. Once products are commercialized, it can be difficult or impossible to increase prices later. Pricing a new product to achieve profit objectives can be even more difficult when alternatives are priced very low or at no cost.

In this PSN Webcast event, Bob Barker, Global Product Manager with Philips Respironics  discussed how his company developed and deployed a pricing strategy for a new web-based software product for patient care applications. He shared how they determined the value created for the customer, evaluated possible prices and metrics based on the customer value and competitive landscape, and selected the optimal price. Mr. Barker discussed how their value-based pricing strategy was deployed to the sales force and marketing organizations. In addition, he reflected on their results and lessons learned with pricing the new product. 

Key Takeaways:

• The steps to determine the right price for your product and the right pricing metrics to put in place
• Techniques for understanding how customers associate price with perceived value
• The type of information you need to gather to determine customer value
• Ideas for building the capability of the marketing and sales organizations to sell the value of the product to customers
• Tactics for gaining the buy-in and alignment of the sales force with the pricing strategy
• Pricing strategy considerations when planning the rollout of a new product
• Approaches for enforcing pricing discipline
• Know who should be involved in setting pricing strategy
• Rules-of-thumb for pricing products

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