Did you realise that YOU control your pricing and profit margin – nobody else?
It’s not the business model, or marketing strategies of others. It’s not even market forces. It’s YOU.
But you need to REALLY understand what your customer wants – so do some research.
You also need to understand what YOU want from your business.
Then you can take a bravery pill and do some price testing.
Are you willing to take a loss when selling to your customers? I suspect the answer is an emphatic NO.
Then fix your pricing based upon the value you give your customer.
Remember that you control your pricing.
So how do you win the confidence of customers when all you have to show them is your pricing power? What value are you giving your customers ?
There’s no perfect way to price a product.
You need to do your homework. The information you gather will help you determine whether or not you’re in control of your pricing.
Look at how your competitors’ price their products.
Can your customers make a straight comparison? This is not a great idea. Look at ways that you can be ‘different’ to others in your market.
Bundle products together. Offer additional services that are hard to quantify like brilliant customer service. Make your customers feel really special. The list goes on…
If you decide to compete on price, you’ll have to always be the cheapest. That’s often not a smart strategy unless you sell massive amounts of a product.
But no matter what line of business you’re in, you need to be in control of your pricing at all times.
When you’re in full control of your pricing, you’ll be able to take the necessary steps needed to ensure that you maximize your profits while minimizing your expenses.
You’ll have more profit for yourself and what’s not to like about that?