What would happen if you were just a little higher priced than your competitor? How would your customers react? Would your loyal customers continue to do business with you, in spite of your higher price?
During high school I worked in a grocery store that used loss leaders to attract buyers. Once buyers were in the store they would typically buy enough related offerings, at higher margins, to more than offset the loss on the loss leader.
The right price is something of a moving target for many companies. You may need to change the tag on a given product multiple times during the period of time you offer it and the more detail you can offer on the decisions to do so, the happier your customers will be.
Getting your pricing just right is tricky. There are big downsides to keeping your prices too low. But it's easy to raise them too high for people to buy anything anymore.
Pricing strategies will help your small businesses make more money. Nothing affects your profits more than the price you charge for your products. But in reality, pricing can be a challenging part of an overall marketing strategy
Now that you have something worth their attention, how do you make contact? By phone? By mail? Before you decide, it helps to first understand how effort and resistance determine which contact methods work best and why.
If you sell a product, then the secret to your success will be to offer a great value proposition. That means that your product should improve people's lives in a way that they deem more valuable than the price you're asking for when you charge them.
Now that you have a better understanding of your prospect's goals and challenges, the next step is introducing yourself in a way that gets their attention and opens the door to a conversation.
In How to Avoid the Low Price Trap we talked about focusing on the tops of the trees, the hard to get clients with the best paying projects. But how do you build that ladder to reach them?
Your pricing strategy is one of the key components of your marketing message. It speaks about things far beyond your cost. It communicates value, customer attentiveness and how you view the relationship, both short and long term. It's not something you should just stumble into.