If there’s a very important factor that new business owners struggle with, it is the art of setting up the right price for their service or product. And for all of us women, we will often question ourselves and struggle with our personal value proposition in a manner that men simply don’t. To master your ‘correct’ price, you will need to blend gut instinct and awareness with a little research and artwork tossed in. These tips will help you to get the delicate pricing balance right in your business and establish you for success.
Why you will need to get pricing right. Exactly why is it so important to get pricing right? Quite simply, the right prices structure will see you achieve the profit margins you imagine, and help you to build a flourishing business. Established prices high however too, and you neglect to earn business.
Set prices too low and customers may question the product quality – or simply leave you without margin. It is vital that you don’t cheapen or devalue your quality service or product – even though your palms are sweating and you are feeling the pressure of closing a sale! And young ladies, don’t even be lured by a price drop.
Good planning will help to avoid this situation long before you’re engaging with your customer. You need to know two things. Firstly, the mindset behind your situation. Understand your customer, and yourself. Whilst authenticity and personality will help you to stand out in business, this is one occasion where it makes sense to know what others are doing successfully, and also to emulate it. Unless your product and service are unique, you will work in a distributed competitive space.
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So, uncover what others are charging in your market and review your own offer then. Use your gut and self-awareness instinct to price appropriately. Don’t be the cheapest. Search for what differentiates your offer, and what add ideals to it. Remember, if you go in at the bottom price, you have to look nowhere.
Secondly, you will need to look at your clients and understand their needs, and define them as as it can be to comprehend what drives them tightly. For instance, time starved, working parents will probably spend money to reap the benefits of convenience. A more diverse customer market will require a pricing range and a little more creativity to meet different needs.
As you utilize this information, through reflection and analysis you will be able to pull collectively a solid prices structure which makes sense for your business. Remember, you can experiment and test thoroughly your assumptions – there is nothing set in rock. Nadia Finer is a business trainer for solo business owners who wish to GO BIG IN BUSINESS, if they feel little even.