Pricing your products in Japan
So how can all this talk about discounting and direct marketing help you sell your product in Japan?
First, remember that to a large extent, Japanese manufacturers control the existing labyrinth of wholesalers and retailers. Your product simply won't enter the system through conventional channels.
Second, with current exchange rates, your product might be cheaper than a comparable Japanese one. But after a few trips through the maze of wholesalers, any price differential you enjoyed would disappear. A more direct and price-sensitive channel will work to your advantage.
When it comes to pricing, you probably know more about how to price your products than I ever could know. But there are a few things you should consider when entering the Japanese market.
First remember that inflation has been much lower in Japan during the past 15 years than it has in America. During the recent recession, prices in Japan have gone down slightly.
This means that you should be wary about introducing your product at an unsustainably low price. Because of low inflation, Japanese consumers will immediately detect any price increase.