Host: Lorraine Ball
Smart Pricing Starts with Your Customer
What is the right price for your product or service? Most business owners struggle with this question because they confuse the cost of producing the product, with the value that it brings to the customer. Establishing prices for your goods or services relatively little to do with what it costs you to make it. The real value is how much you help your customers save, increase, reduce or improve .
If you can quantify those benefits then you have a foundation for establishing an appropriate price for your goods or services. To calculate your value answer a few questions.
- How much can my product help a customer earn? Can you help them increase their income directly or indirectly?
- Does it create a foundation for future opportunities or establish valuable relationships with their customers?
- What are some of the intangible benefits that your customers might realize and is it possible to quantify those benefits?
- Will your product improve their abilities, confidence, appearance, or peace of mind?
When you focus on the solutions to their problems and associate that with a dollar value you have a powerful message to include in your marketing material and a solid foundation to charge a premium for your product.
Start Working on Your Plan
Pricing is just one of the many elements you need to consider as you develop your business plan. If you’re ready to work on your plan download a copy of our simple business plan outline.
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.