5 Steps to a Great Pricing Strategy

There are many important aspects to running a business, but perhaps the most important of all is your pricing strategy. At the end of the day, whether customers are willing to keep spending money at your business and whether you can afford to stay in business comes down to your prices. Here are five steps to get you on the right path for an effective pricing strategy.

How Do I Create High Margins?

One of the most difficult elements of marketing for most people is the art and science of pricing. There's a lot of science to it—but it's also an art. How do you price your goods and your services? Where do you start?

If the Customer Doesn’t Want to Buy, Discounts Won’t Help

It's a major sales error to use pricing actions to break a stalled deal lose. Pricing actions are meaningless until the customer decides, "I want to buy." Pricing actions are meaningless until pricing is the only issue keeping a customer from buying.

Compete on Value, Not Price

Instead of chasing the lowest price, you must develop customers who are loyal to you because you have provided them the value they need. Just remember that it is up to you to spell out this value so they understand what they are receiving.

An Unconventional Path to Better Business: Raise Your Rates & Turn Clients Away

When I started out my own business, I made so many mistakes. A year and a half later, the company's revenue has increased by over 300% and my personal profit has increased by more than that. Want to know the reason? I did two things: I raised my rates and got pickier about the clients I work with.

A Sane Approach to Pricing for Someone New to Freelance

How do you handle pricing when you're a freelancer? What type of freelance business are we talking about? It really doesn't matter. The situation is similar for bookkeeping, web design, programming and any number of other service businesses that can be handled by a solo practitioner.

Sometimes Revenue Is the Wrong Sales Metric

Revenue is important! The top sales executive needs to be accountable for producing the expected revenue. But the top sales executive is also accountable for executing the corporate strategy. Sometimes to do both, we have to change the way we measure (and compensate) sales people. Sometimes revenue quotas are the wrong thing.

A Great Product Will Fail Unless You Price It Right

One of the toughest decisions for a startup is how to price their product or service. The alternatives range from giving it away for free, to pricing based on costs, to charging what the market will bear (premium pricing). The implications of the decision you make are huge, defining your brand image, your funding requirements, and your long-term business viability.

Incorrectly Pricing Your Product or Service

Most new business owners tend to undervalue what they charge for their work and services in order to compensate for not being as established as their competitors. As long as you have a top notch customer service experience and offer a product or service that's similar or better than a competitor, you shouldn't devalue yourself.

Don’t Let Your Beliefs Limit Your Pricing

As a business owner, you want your prices to be fair to both you and your customer. But your price should also reflect the value that your customers are getting. Don't limit your pricing based on your fears of what customers will think. If you're still offering value, then you'll find the customers you need.

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