Pricing strategies for your business can be difficult to identify and test.
In this video I’m going to define what pricing is, what pricing options you have when you’re testing your product/service in the marketplace, the different pricing models and pricing guides you should be following, and some examples of pricing that works for my clients.
First thing you need to understand when pricing your product or service is that whoever can pay the most to acquire a customer wins.
On top of that it’s important to really know what your “true cost” is in your product/service and make sure you price it so that you can give yourself room to grow.
Have you ever actually sat down and figured out how much it costs for your product/service?
Sure, some people know inventory and software, but have you factored in: employee payroll, office space, sales commission, cost per acquisition, returns/refunds, and everything else that goes along with it?
Another pricing strategy (especially when pricing a product/service in marketing) is understanding what the perceived and actual value of your product/services?
Finally, make sure you test, don’t guess.
Most entrepreneurs figure out a price they think works and they stick with it until they die.
Don’t be afraid to test, but it is incredibly important to track your closing percentages and churn rate so you can understand what works and what doesn’t.
