You’ve completed your package design. The colors and graphics pop, the copy is catchy and concise, and the size, shape, and format are optimized to really stand out on the shelf.

Then all of that hard work is undermined by poor pricing…

Once you attract the shopper to your product by its sleek packaging, its price can either continue to hold the shopper’s interest or send her down the shelf to your competitors. Don’t believe that this only happens when the price is too high -- depending on the product and/or category it lives in, the price can denote value or quality, in which case a low price may drive the perception of a cheaply-made or underperforming item. Pricing too low is just as bad as pricing too high.

Here are some tips on pricing your product just right:

• Begin with basic questions about your product; if your product is entering a category where others already exist, does your product have additional ingredients? New technology? A larger size? More convenient use? If you truly have added recognizable value beyond what is offered by competing products, you may be able to charge a premium. At a minimum, these enhancements that differentiate your product from competitors should be enough to steal the shopper away from them.

• Whether you are in a mature category with significant number of products that is on the rise or a young/new product category that is in demand, the consumer may be more willing to pay somewhat of a premium to enter.

• Gauge the depth of consumer loyalty manufacturers have been able to procure for their products to determine the cost of entry for yours, and make sure that cost is reflected in your product’s price.

• Each retail class of trade – mass, drug, grocery, club – has its own pricing philosophies and consumer “sweet spots.” Be sure you are aware of them to be certain you are pricing within those expectations.

• Know shoppers’ decision-thresholds on price points. For example, if you price your product $4.79 vs $4.99, are you really any more attractive to them, or are you just giving away profit with no benefit? One exception to this, however, may be if your company has an overall philosophy where certain pricing strategies are used as a marketing tool.

• It’s critically important to understand the role your product will play in the retailer’s merchandising strategy. Is it a frequently purchased product that may be used to drive traffic? If yes, then these items will typically be presented at attractive price points with lower margins as they will be highly competitive. Since shoppers tend to purchase these items more frequently, they will be more likely to remember the price and may seek those retail locations or competitive products with the best price. Or, conversely, will the product be less frequently purchased, and/or a convenience item where more profit can be generated?

• How will your product be promoted? Should retail be set to allow for different offer types, such as BOGOs, % off, or rebates? Unless the item or category allows for it, be careful as to not set your retail to offset need for the advertised price as you can set yourself up for everyday purchase failure.

• If your product is a candidate for multiple pricing – for example, if it has a quick use-up rate – then be sure to set the single retail price high enough (but within reason), so that it will make the multiple look more attractive. Know the product’s price limits, as if it’s too high of a retail, except for some exceptions, will not entice shoppers.

• If you believe there is a significant reason to “MAP” price an item, make certain you specify in significant penalties in the contract if the price isn’t followed. However, this means nothing if you don’t have the guts to enforce those penalties if abused.

• If you do not have the resources for pricing data digs, and the analysis of consumer purchasing decision trees, reach out to your retailer or manufacturer for help. There are also volumes of syndicated research data available on these subjects. You must be very confident of your pricing decisions on Day One, as your first impression is your most important and you may not be fortunate enough to get a second look.