Background
Your company produces windmills accompanied by electric generators. The cost to manufacture this product is $10,000. However, determining the price customers are willing to pay for it remains uncertain.
Key Considerations:
Market Assessment: Analyze industry competition, potential substitutes, and supplier-buyer dynamics.
Value Proposition: Evaluate the perceived value of the windmill and generator to potential customers compared to existing electricity sources.
Final Analysis
To ascertain the ideal price for the windmill and generator, delve into the following steps:
Market Assessment: Analyze industry competition, potential substitutes, and supplier-buyer dynamics to understand market conditions and pricing benchmarks.
Value Proposition Analysis: Evaluate the benefits provided by the windmill and generator, considering the closest substitute (utility-produced electricity), and ascertain the cost-benefit estimation to determine what customers might be willing to pay.
