Pricing

Once you have completed the QFD and you have agreed which design characteristics your product will have and when, you must begin the analysis of determining how to price your new offering. Setting the correct price for your offering is critical to a product developed through VoC. Set the price too high, and the sales team will have difficulty closing sales, your revenue targets will not be met, or the customers will not purchase your offering at all. Set the price too low, and you will leave margin behind, or even worse, operate at a loss. Price ends up being the number one factor that dictates whether your offering will succeed or fail in the marketplace. While this is not a book on pricing, it is my desire that you will begin to understand how customer VoC can drive pricing decisions, and as a result, you will incorporate value questions into your VoC research.

When setting price, you need to look for the best, or what could be considered the optimal price, to maximize your profitability...