How do you handle pricing strategies for hardware, especially for different markets?
Avoid cost-based pricing as it can be one of the biggest pitfalls related to HW pricing.
HW costs can and will change based on the number of units you produce. So if you can afford to, take a longer term view of the business.
Price the product based on the willingness to pay (to match the value generated by your product for the customer).
Think about the pricing roadmap over the life of the product (not just the Price-at-launch).
Does the launch price give me optionality to offer promotions?
Do I want to do a launch promotional pricing to generate interest? This has to be time-bound.
What is the competition price point? and how much is my product differentiated compared to the competition?
Value-based pricing for HW products works much better than pricing strategies designed to penetrate the full market on Day 1.
Top Product Management Mentors
