“The Right Price ”
episode #747 – July 17, 2022
HOST: Lorraine Ball
Your price should be driven by the value you deliver, not the cost of delivering it.
What is the right price for your product or service? Most small business owners struggle with this question, because they confuse the cost of producing the product with the value it brings to the customer.
When it comes to establishing a price for your goods or services, the value of your product has absolutely nothing to do with production cost. The value is based on how much you help clients save, increase, reduce or improve. If you can quantify these benefits, then you have a foundation for establishing an appropriate price for your goods or services.
Calculate Your Value
How much value do you deliver? Use these questions to build your value:
- How much can my product save my customer? Savings may be in time, money or effort.
- How much can my product earn for my customer?
- Can you help them increase their income; directly or indirectly?
- Does it create a foundation for future opportunities or establish valuable personal relationships?
- What intangible benefits might customers realize, and is it possible to quantify these benefits?
- Will your product improve their abilities, confidence, appearance or peace of mind?
about the marketing minute
Each week, host Lorraine Ball shares just a few words on a marketing topic. She boils down creative ideas, practical tips, and decades of real-world experience into a mini podcast which is always less than two minutes.
Look for these mini bits of marketing inspiration every Sunday. Then come back and enjoy the longer interviews every Thursday.