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May 24, 2018 / Uncategorized

Faster Product Development – How Our Clients Cost Estimate Decisions Affect Product Pricing

It plays an important role in selling your product to the market and knowing which applications will be able to support the product's sales price. Chemists and engineers need to develop technical solutions where customer value solutions support the price levels needed to develop the product.

In order to determine the value of a product for a customer, it is important to understand how the customer closes the costs. Knowing that the product is valuable to customers and aware of the fact that the customer will take into account all the factors in the pricing decision will decide what options are available.

Your product will be valuable to your customer if you save the costs that are currently incurred. But if the current costs are not taken into account in the cost equation, you will not get a loan to cut costs. This is particularly true of companies with higher accountability. If the decision-making customer's business does not get credit for your books because of the consequent process improvement, you probably will not count on your calculations. This reduces the potential value of the solution to customers – perhaps to the point that it no longer makes the product more competitive.

There are other factors that affect the value of the product for customers. Here are some of the factors: How does customer change the replacement costs in decision making? Are you looking for direct substitutes? Do you consider the assembly cost? Is there any additional or less special packaging or treatment required to use this product? Do you need further processing steps or will some processing steps be lifted? Are there enough free floor surfaces in the client's current footprint to install the solution? Are there any further processing requirements (eg Ventilation) that you will need or possibly be eliminated?

Source by sbobet

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