How to Do Pricing Research Before Launching Your Product in Dubai

In this article, we’ll walk you through exactly how to do pricing research the right way. Whether you’re launching a tech product, opening a beauty salon, or offering consulting services - this guide will help you figure out how much to charge confidently.

Ready? Let’s talk real numbers.

What if you’re charging more than what people are willing to pay?

Or worse - what if you're charging too little and leaving money on the table?

Let’s face it: pricing your product or service is one of the trickiest - and most important - decisions you’ll ever make when launching in Dubai.

We’ve met founders who underpriced themselves out of business. And others who overpriced their service and couldn’t get a single sale.

So the real question is: how do you find the “sweet spot” that works for your customers - and your bottom line?

Why Pricing Research Matters (More Than You Think)

You can have the best product in the world - but if the price doesn’t feel right to your audience, you won’t sell. And in a competitive market like Dubai, people have options. So your price needs to make sense, both logically and emotionally.

Here’s what pricing research helps you understand:

a. What your customers are actually willing to pay
b. How you compare to your competitors
c. Whether your offer feels like a “deal” or a “rip-off”
d. If you’re building a profitable and sustainable business

In short - it’s not just about numbers. It’s about positioning, value perception, and strategy.

Before we dive deeper into pricing, it's important to know that pricing research doesn’t stand alone. It works best when combined with customer research and competitor analysis. You need to know who your audience is, what they value, and how your competitors are positioning themselves in the Dubai market.

If you haven’t yet explored those, we highly recommend reading our guides on How to Do Customer Research Before Launching a Product and Understanding Competitor Analysis for New Businesses in Dubai. These two insights form the foundation that supports a smart pricing strategy.

1. Start with Willingness-to-Pay Research

The first question you should ask isn’t “What should I charge?”

It’s: “What would my ideal customer happily pay for this?”

Here’s how to find out:

a. Talk to your target audience –

Run short surveys or one-on-one calls. Ask them how much they currently pay for similar products, what feels too cheap, and what feels too expensive.

b. Use pricing models like the Van Westendorp method –

This helps you identify the acceptable price range, ideal price point, and cut-off points where customers start walking away.

c. Get honest feedback –

Don’t ask “Would you buy this at AED 500?” Instead, ask “At what price would this feel expensive but worth it?”

This helps you price with confidence, not just guesswork.

2. Check What Your Competitors Are Charging

You’d be surprised how much you can learn just by studying the market.

In Dubai, there’s always someone offering something similar - so look at them, but don’t copy them blindly.

Here’s what to look for:

a. Their price range –

Are they premium? Budget-friendly? Somewhere in between?‍

b. What’s included –

Are they offering extras like free delivery, after-sales support, or bonus features?‍

c. How they position themselves –

Are they targeting high-end clients or mass market?‍

d. Customer feedback –

Read reviews. Are people saying it's overpriced, underwhelming, or a good deal?

Remember, pricing is not just about being cheaper - it’s about showing why you’re worth what you charge.

3. Understand the Value You’re Offering

Here’s a truth most people overlook: customers don’t buy products—they buy outcomes.

Your pricing should reflect the value your product brings to their life or business.

Ask yourself:

a. Does my product solve a painful problem?
b. Does it save time, reduce effort, or boost income?
c. Will customers feel proud or smart for choosing it?

If the value is clear and strong, you can price higher - and still make sales. That’s the power of value-based pricing.

4. Test Different Price Points (Yes, Even Before You Launch)

Here’s where it gets exciting.

You don’t have to guess your price - you can test it.

Here’s how:

a. Run ads or landing pages with different prices and see which one gets more clicks or conversions
b. Offer A/B pricing during a soft launch to different segments
c. Introduce limited-time pricing to see what creates urgency

This gives you real-world data - not just opinions.

And you’ll be surprised how sometimes, the higher price converts better because people perceive it as more valuable.

5. Don't Forget the Psychology of Pricing

Small pricing tweaks can make a big difference. Try these:

a. Charm pricing –

AED 99 sounds way better than AED 100

‍b. Anchor pricing –

Show a higher price next to your actual price to make it look like a deal‍

c. Tiered pricing –

Offer three packages: basic, standard, and premium. Most people pick the middle one.

These aren’t gimmicks - they’re proven psychological strategies that boost sales.

6. Know Your Bottom Line

Pricing research isn't just about customers. It’s also about your numbers.

Calculate:

a. How much does it cost you to produce, deliver, and support your product or service?
b. What’s your target profit margin?
c. At what price would you break even?

This gives you your pricing floor - you should never charge less than this.

7. Bundle or Tier Your Offers

Instead of trying to find one perfect price, why not offer options?

Example:

Basic package: AED 499
Standard package: AED 749
Premium package: AED 1,299

Different segments of your audience have different budgets. Tiered pricing lets you serve all of them - without discounting your value.

Final Thoughts – Pricing Isn't Guesswork, It's Strategy

You’ve put time, money, and passion into creating your product or service. Don't ruin it with a random price tag.

Smart pricing means:

a. You get paid what you're worth
b. Your business stays profitable
c. Your customers feel good about buying from you

And if you’re launching in Dubai or anywhere in the UAE, the market is diverse, competitive, and fast-moving. Your pricing has to match the value you bring - and the expectations your audience has.

Need Help With Pricing Research?

At COFTT, we help founders, startups, and service businesses like yours do in-depth market research in Dubai - including pricing strategy, customer research, and competitive analysis.

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Whether you're launching your first product or scaling your offer, we’ll help you price smart and position strong. Want to get your pricing right from day one? Let’s talk. Contact us or request a free consultation. Email us at info@coftt.com