How Much Will You Charge?

During our discussions in class it became very clear that having a clear understanding of your product or service included having an idea of how to price your service or product. It may seem very simple but I remember asking myself how do big corporations come to the conclusion of where to place value on their goods. I believe a huge part of this includes understanding what your competitors are doing. This relationship is something I am very used to seeing as this is something we do on a monthly basis when running a grocery store/ smoke shop. As terrible as cigarettes are for people it cannot be argued that there is a huge market for it. One of the biggest ways a business selling cigarettes can distinguish from one another is at what price point they decide to sell their goods. My father will go to other stores that sell cigarettes and see how much other competitors are selling their goods for, and accordingly we will adjust our prices to match or sell slightly less then the competitor. Based on this practice I had done research on the main competitors I have in starting up my business, which are Fitbit, Hydroflask, and Hidrate Spark. Since my water bottle design will include parts from all three companies I have decided to be realistic and decided on a price point that is somewhere around the combined prices. The cheapest model of the Fitbit is around $60, however after some research there are other companies that have utilized Fitbit’s design and have similar devices being sold at  $25 - $30. For the Hydroflask and Hidrate Spark both companies have very similar prices sitting around $33 - $55. Keeping these prices in mind I have decided to charge anywhere around $60 - $90. At first this price point my seem outlandish, however considering my device will be an all in one device you will be getting the benefits of all three companies, however in a singular unit that will keep your water cold or hot, while tracking your water consumption rate, and keeping track of how  many steps you have taken on a daily basis.