You're facing customer feedback on your new product's pricing. How will you respond effectively?

Listening to customer feedback on pricing is crucial, but beware of overreacting to vocal minorities. Acknowledging feedback is essential, yet it's important to distinguish between common trends and outliers. As Henry Ford once noted, "If I had asked people what they wanted, they would have said faster horses." Understand the broader market context to make informed decisions without getting swayed by every critique.

Take customer feedback seriously. Adopt following points to listen to your customers. > Your customers actually decide the worth of your products. They represent the face of a market. Hence do listen to them carefully and attentively. > If you feel one customer's feedback is an exception, do take more feedback from different set of customers. You may include statistical methods and Six Sigma approach to gather effective customer feedback. > You can make written questionnaires, verbal feedback, casual discussion to know about customer's response, etc. > Make a thorough strategy for the whole feedback process > Use Plan, Do, Check, Act, Repeat cycle to make the feedback exercise a habit and part of organization culture.

Objective analysis is only half the battle; you must also trust your initial market research. Analyzing feedback helps, but don't let it completely derail your original pricing strategy if the foundations were sound. Steve Jobs famously ignored focus groups, believing customers often don't know what they want until you show them. Balance feedback with the vision and confidence in your product's value.

Getting pricing feedback on a new product should be integral to the launch, not an afterthought. Attach a price hypothesis to your value proposition and test it systematically. Pricing is a powerful lever for capturing value. Ensure the design focuses on customer value and that price tags are consistently tested and adjusted based on feedback. Be open to rethinking how your product adds value and to whom, and adjust and improve the price as a consequence.

Reacting to customer feedback on pricing is just part of the puzzle; focus on creating perceived value too. Price adjustments can be effective, but enhancing the perceived value can often yield better results without slashing margins. Warren Buffett emphasized, "Price is what you pay. Value is what you get." Innovate in ways that increase value perception, making your price seem like a bargain.

Understand their concerns as due to them your company is alive. No customers, no company/business. Highlight the benefits and unique features that justify the price. Show how your product offers better value compared to others. Check back with them to ensure their concerns are addressed. Let them know that you're dedicated to giving them the best service and meeting their expectations.