The old time question of...How much to charge? Input appreciated

[SCJeff]

So, I have my product and website is in the works, have the domain, and hosting, just in the process of building the site.

So for an example we'll just say i made a new kind of tooth brush. There is only one other competitor in the market (we'll say Crest). They have their product selling for $10 and I'm able to make mine for $2 and have no other employees to have to pay and am working out of home. And we'll add another $2 to so we'll say $4 to cover the cost of one unit, and the extra to go to the site, and advertising. how much should I be selling for my "toothbrush"? So by charging $4 i'll be covering my expenses.

I obviously want to make a profit, and as much as a profit as possible. If you were in my shoes, would you either match the price of the competitor? Or Be a few dollars cheaper to try to gain more sales due to a cheaper, but same quality product?

I'm just kind of playing around on the idea of what I need, and want to charge for my product any input would be great.


PS. and in case you havn't caught on, I'm not really selling a toothbrush lol
Jeff-

[Auspreneur]

I think maybe play around with the price a little bit. This doesn't always mean undercutting your competitor is their an opportunity where you can price your product more then what they could.

There is a famous winery in Australia that a few years ago sold middle of the range bottles of wine. The company was starting to struggle and was very close to going bankrupt, 99% of the time when this happens a ceo will lower their price and try and sell in higher quantities.

Well this CEO decided to do something different and sell the bottles at a higher premium he changed absolutely nothing with his product just the pricing and now it is one of the most famous cellars in Australia.

Just thought I would throw the idea out their that you don’t always have to under cut when in a pricing war.

Are you selling just a product or is their other ways a customer can benefit from buying your product.