One of the hardest yet most important things your business needs to get right is the price of your product or service. Pricing is such a crucial part of business success that there are plenty of cases where companies have got it totally wrong or absolutely right.
But getting the price right doesn’t need to be impossible. In fact, it is simple if you just follow these three little tips.
1. Crowd source The Price
Sometimes the best way to find just the right answer is by asking directly from the people involved with the product. If you want to know a price that is just right you should definitely consider asking it from the customers.
Crowdsourcing the price is a really good idea to see what real paying customers are willing to pay for your product. The great thing about asking your customers directly is also the fact that it helps you generate a buzz around the product as well. It is a great way of creating that initial interest for the product.
There are many different ways of crowdsourcing the price. For example, you can create a customer survey with Google Forms and then post a link for this survey on different social media platforms.
2. Be Accessible
It is really important that when you are pricing a new product you keep the pricing accessible. You don’t ever want to scare away your customers and getting the right balance with the price is really important.
You need to understand that when a customer is giving you a certain amount of money they do expect to receive the same value with your product. Thus you really need to think about the product and the usability of it for the person. You also want to guarantee that they feel the whole deal is something they’d recommend to others as well as to purchase again themselves.
3. Fill In A Gap
Naturally, the price should also reflect the market a little bit. It is a very good idea to see what the market is when it comes to your product. It isn’t easy to start competing against other products and therefore you should always aim to fill a gap with your product.
This means that if there are plenty of low and high priced products in the market you could create a medium priced product. This might mean that you need to think a bit about the product development process but it will be worth it.
Don’t copy your competitors when it comes to products and the price. This still doesn’t mean that looking what they are doing isn’t helpful. It can really help you focus for the right target market when you see what others are doing.
The above three tips show that getting the price right doesn’t need to be all that difficult. If you keep the three tips in mind you can really make the most with your product pricing and get your business to succeed.
Just take enough time to look at the pricing and don’t be scared of correcting your prices later on.
- License: Creative Commons image source
Bruce Hunt is really interested in pricing and finances. He is also after cheap and affordable professional accounting companies to ensure business owners can make the most out of their money. He is also really passionate about motor sports.