Best way to price a new piece of industrial equipment?

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Our client is launching a mid-range CNC machine and has no idea where to set the price. Has anyone used conjoint analysis for something like this or is there a better approach?

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Amara Okafor · Answer

Conjoint is definitely the right instinct for this — discrete choice conjoint specifically works really well for capital equipment where buyers are weighing multiple specs against price. I'd pair it with a competitive pricing audit first so your price levels are grounded in reality (nobody wants to test $50k–$150k if the market is sitting at $80k–$120k). Aim for 200–300 respondents who are actual buyers or specifiers, not just end users.

Best way to price a new piece of industrial equipment?

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