Setting the price on build-to-order products

As a manger of a manufacturing plant, you deal with a number of different issues. Many of the issues can slow production or lead to problems within the actual plant. When you have customers that want build-to-order products, it's a great way to see that your products are in demand but it can be quite challenging to keep up with and to set a reasonable price. Build-to-order products are always more expensive to produce. How can you set the price on build-to-order products?

The fortunate thing for you is that there are strategies you can use to set the price on build-to-order products that will make sure they are actually worth the time and effort you put into making the products.

Do you need to price the product higher? High pricing strategies can be challenging as you need to make sure that there is a high demand for the product in the first place. This comes by having a good reputation and to make sure that your customers want the product and value the quality of it. Use premium pricing when you are setting the price on build-to-order products. What is meant by premium pricing? It usually refers to offering a high quality product that will go above and beyond your customer's expectations. If your product is superior, your customers will pay for it. Premium pricing can be done on new products or build-to-order products since they require more time and effort from your company to produce them.

What about charging a lower rate for the products? You can charge a lower number if you feel it will keep the customers coming back for more, but it can cut into your profit. Low pricing strategies usually involve promotional pricing, which is common for new products of when you are marketing during the holidays. If you want to use promotional pricing on build-to-order products, you need to be sure that the customer is ordering a specific amount in order to make it worthwhile for you to invest in the order.

Build-to-order products require more time and effort on your part so it is essential that you make sure you are getting compensated fairly for your hard work. Make sure you look at the various pricing options and strategies that are available in order to come up with one that is fair. You also need to watch the pricing strategies to change them to provide for your company as you continue to grow and develop and the demand for more build-to-order products grows based upon your reputation and the services you provide.

Raw goods play a big role in setting the pricing on your products. If you have expensive raw goods to use, you will want to look into finding a new supplier that can offer cheaper rates on the products for you. Be careful about reducing the price by a significant amount though as it will lead to poor products that you are sending out to your customers. When you opt for cheaper raw goods, the outcome isn't always desirable.

Look carefully at your market and your customers in order to decide if you want to offer build-to-order products. Build-to-order products are pretty expensive and they aren't always the best investment decision for your company. Make sure you have the time and manpower to create the build-to-order products and make sure you are getting compensated correctly.

No matter what type of pricing strategy you choose to go with, you want to make sure it can change for the demands of your market and your customers. Your business is only going to grow and develop so it is important to take the time to think about the future of your business instead of just here and now.