Demographic segmentation separates consumers according to personal factors, such as age, race, education and income. What are the potential roadblocks preventing you from entering the market?
This is where you provide information on the research you've completed on how long it will take to handle individual orders and large volume purchases, if applicable. Check out websites for pricing and other marketing information.
Psychographic segmentation separates consumers based on psychological factors such as beliefs, attitudes and perceived needs. In computers, is there a trend toward more power and lower prices? Let's keep our office furniture example and try to estimate the value of the 'desk' segment.
Of course, you should ensure that your price is more than what it costs you to make and deliver your product or service. Demand forecasts can be tricky to develop for first-year businesses; a good place to start is to analyze existing companies' market share and estimate the effectiveness of your initial marketing efforts at gaining a foothold in the market.
How does the competition work to solve those issues? From what your business looks like to its logo and customer service experience, high-prices should come with a high-quality experience during the entire sales process. Industry research and analysis is different than market research.