I'm helping a friend's startup figure out pricing for their product. What are some tools/services that you use to do this?
Are there any pricing analytics platforms that you'd recommend? I can't find anything that wasn't enterprise focused ("Call for pricing!"). Are there any services that your company uses that you're happy with?
Ideally, it would help calculate common metrics & make suggestions for pricing experiments. Some of the examples I have seen are value based pricing, cost-plus pricing, or competitor based pricing. It is unclear to me what is the best route to follow and why.
Value proposition design (analyze how you want to position your product based on gains, losses, emotional, social and functionality), then present NOT a single offer but 2-3 products so that your client changes from "shall I buy?" To "which of the options is the most appropriate?".
Lot that goes into pricing strategy. If you have not, start with a break even analysis. Determine minimum needed profit to be able to continue to function as a company. From there you will know your base price to start from. If your competitor is priced lower, then you better make sure you are offering added value with your product. If your competitor is priced higher, you can still offer more value at a lower price. But you also need to analyze whether your competitor can win in a price war before you start under cutting in price especially if there is no added value. For example if your product break even is $5 dollars a unit and your competitor charges 7, so you charge $6. He may come back and offer his product at $4.50 at which point you are losing .50 per product to keep up in the price war you started. Hard to give a detailed answer though without more info.
you need to pick your business model first. are you trying to create a premium brand then ,you need to have premium pricing and product. If you are going for volume price competition business model, then you need to figure out where you can fit in the market to capture as much sales as possible.