Successful entrepreneurs usually move so fast toward the next main goal that they usually come up with a high price that they think is fair and pay it. Or they can consider the price of competitors and adopt the “Goldilock method” (not too high and not too low). Or they can calculate their own costs, increase the required earnings, and then cross-charge and hope to get the most of it.
Don’t worry, we’ve done it at every stage of our business journey.
Fortunately, there is a more strategic pricing method that can help you sell products and services at prices your customers like and generate profit for you.
After all, you are already working hard to develop a product that solves the big problems of your target market. Now is the time to satisfy your customers and increase your income.
Price based on a “true value” comparison
We assume that you recently established a Keto-based coaching company to help people lose weight. He has compiled a list and, in the last few months, has been seriously building relationships with these clients. Now, you can provide them with your first product: a 6-month weight loss program, specifically for those who have lost 100 pounds or more.
If a customer buys your program and loses £ 100, what does this mean to him? How much money do they have to throw away their elastic waist jeans and have the confidence to start dating online? What is the value of weight-related health problems (like high blood pressure) in the past? One hundred thousand dollars? One million dollars?
By asking questions and discussing with potential customers how they perceive you, you can generate real value for your product from the eyes of the target market. Now, the price you decide to charge for the course is only a small part of its true value, but it is likely higher than the price you initially thought. It is also important that you now have powerful messaging functions that can be used in advertising.
For example, are you losing 100 pounds, and can you throw a soccer ball at your child without feeling like he is dying for $ 297? of course! Now, its price is cheap because it provides more value.
Using the micro-pricing strategy
assumes that you can choose to buy 1 bottle of beer or 6 bottles of beer. When you buy a single bottle, the price per bottle is higher than the price per bottle compared to the price of 6 packs. However, if you’re new to beer brands and just want to try something different, then buying one beer for $ 3.99 instead of buying six of them for $ 24.99 sounds more appealing. For first-time customers, this is a good pricing strategy because it reduces their fear of making the wrong decisions and gives them the opportunity to provide a great first experience so customers don’t need more.
Uses the “premium price” to discount from
This is my least favorite pricing strategy because people usually implement this strategy unethically by “inflating” the premium (no one wants to pay) and then offering generous discounts. It ends up being the price you expect to pay. However, this strategy works, which is why many large stores use this pricing strategy. For some reason, this is a powerful pricing strategy. You will attract a lot of customers at the door, but don’t use it often because it effectively limits your customers so that you never have to pay the full price again.
I just provided you with three reliable pricing strategies to start implementing in your business, as well as pitfalls to be aware of. Now you can leave the guesswork to your competitors and start testing!
Also Read: Challenges Of Women Entrepreneurs
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