The initial price point of a product can significantly affect its overall profitability. If the price is set too high, it may deter potential customers, leading to lower sales volume. However, if it's set too low, while it may attract more customers, it could result in lower profit margins. Therefore, it's crucial to find a balance where the price is attractive to customers and can also cover the costs and provide a reasonable profit margin.
Need to evaluate the best pricing strategy for a product? This Pricing Strategy spreadsheet includes...
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