Pricier. And still more demand.
How BSH decided price and colour of the Bosch SmartGrow on purchase behaviour.
How the Smart Indoor Gardening team at BSH settled two open questions before the next step: does demand support a higher price for the device made from recycled material, and is a black variant worth building?
What it is about
A market without market data.
Indoor gardening is growing, but awareness is low. For the question of how many units would sell at which price, there was no market data the team could build on.
Just before tooling, a second question came up: the device is made from recycled material, which costs more. Can the price go up without losing demand? And would a black version, easier to make from recycled material, be bought?
Which price and which colour variant carry demand, before development and a price change cost money?
E-Lin Tan
Global Head Smart Indoor Gardening, BSH Home Appliances
Daniel Putsche
Founder and CEO, Horizon
What you take away
Four points from the recording.
Behaviour, not statements
In surveys people often said the device was nice but a bit too expensive. In a test with a real buying situation, behaviour looked different.
Price
The variants priced 10 and 20 % higher did not perform worse than the base price. That carried the pricing decision.
Variant
The black version drew clearly more purchase intent than the white one, before development resources were committed.
Prepare inside a corporate
Settle brand, the reveal at the end of the journey, legal and the overlap with running advertising upfront. Then the test is ready within a few weeks.
Chapters
Jump to the right moment.
After the form, the timestamps jump straight to that point in the recording.
00:00 Welcome and agenda
04:12 Why new products fail and what surveys do not show
07:54 “If you buy it, we build it”: measuring purchase intent before development
10:57 BSH: indoor gardening without market data
13:55 Recycled material: can the price go up?
15:33 Test 1: which price carries demand?
17:48 Test 2: black or white?
19:12 What a corporate should settle before the test
23:30 Questions from the audience
Read the case
The case behind it.
More webinars
From practice, recorded.
Next step
Test your next price.
In a conversation we clarify which decision is coming up and what a test for it looks like.