How to Set the Right Product Price: Use Data, Not Guesswork

Most SMEs in Indonesia set prices based on gut feeling.
They follow the cheapest competitor or simply mark up supplier prices.

The problem?
You don’t actually know if your price is too cheap, too expensive, or just right — because you don’t have the data.

Correct pricing starts with one thing: knowing your position in the market

Who are your competitors?
What are they charging for similar products?
What value do they offer at that price?

Without these answers, you're pricing blindly.

Step 1: Identify your competitors

Find 3–5 businesses selling similar products/services to the same target market.

Step 2: Compare product pricing

If you're 10–20% below average → you're underpricing.
If you're above average but still selling → your pricing is strong.

Step 3: Adjust your pricing

Increase perceived value at the same time, better product photos, more premium packaging