Overpricing a new product or service will drive away potential customers at a time when a business most needs to expose that product or service to as many customers as possible.
In the early stages of product rollout, getting people to try what you have to offer is even more important than short-run profitability. Of course, price should always be an appropriate reflection of the quality and value of the product, but if no one is buying what you have to offer and your prices are on the high end of what similar products are selling for, then that is a pretty good indication a new pricing strategy is in order.
Knowing that most customers like a bargain, one simple way to adjust price is to promote the reduced price as an introductory discount. You needn’t concede that your product was overpriced to begin with, but you're inviting potential customers to enjoy a temporary rollback in price so that they can see for themselves that the product is worth the full asking price. The price reduction should be compelling enough to entice potential customers. Coupons for money off the purchase price are another way to accomplish this.
If your product is clearly priced higher than what the market will accept, simply lowering the price to an appropriate level is not a fatal step. However, it is important to remember that any price change in your product sends a signal to the consumer. A pattern of incremental reductions in price will send the message that consumers aren’t interested in what you have to offer, and that will create even more challenges for attracting new customers.
