Tips to Setting Your Price

How to delight from the inside out

Setting your price can be one of the hardest tasks when it comes to selling your product or service as a business. The price you put on your products or services can determine whether you'll be successful and whether you can entice customers to buy from you. If you want to learn more about setting a good price on your products or services, consider these tips:

Tip # 1: Research the Industry

When your business is just starting out, it’s incredibly important to research your industry. Are you selling beauty products or pest control? Are you opening a fast food business or perhaps even a social marketing business? What is the competition charging?  What is the high-end and what is the low-end of the cost scale? Research your industry to find out what other businesses are charging their customers. That way, you can get a better idea of the ballpark you want to charge for similar products and services.

Tip # 2: Know Your Audience

Who's your target audience? This is important to keep in mind because if you’re catering to the wrong audience, your business might not have quite as much success as you originally intended. Knowing who your audience is, their needs, their desires, their spending patterns and what they’re looking for can take you far.

Tip # 3: Know Your Angle

Once you’ve figured out your audience, the next step is to figure out what your angle is going to be for your business. What type of approach do you want to take in your industry? How can you cater to your audience so they’ll receive it with open arms?  What sets you apart and is your differentiator?  And where do you want to come in for price-point compared to others?

Tip # 4: Make Customer Relationships a Priority

Owners of small businesses often ask how they can make their business stand out from their competitors. Especially when other businesses have been around longer, this can often be a challenge. However, customers love a personal touch, and a lot of times, this is the driving factor in a customer’s decision on which business to frequent. As a small business owner, make customer relationships a priority and you definitely won’t regret it.  The more you can make a connection and offer good support over time, the more business you can get and sustain.

Tip # 5: Know the Differences in Pricing

There are different pricing options to consider when opening a business: value-pricing, retail pricing, and hourly pricing. Depending on your product or service, you want to make sure you’re charging your customers fairly but also competitively. Also, don’t be afraid to have higher prices than your competitors. It isn’t always the lower price that makes the sale; it’s that personal and unique flair that your business can offer your customers that makes them want to come back, again and again.  There is room for high-end offerings as well.  The one I recommend you stay away from is being the absolute lowest cost.  That’s not a good long-terms strategy and it often draws the wrong type of client.

Tip # 6: Don’t Sell Yourself Short

Your business is worth a lot because it has a unique flair, so don’t sell yourself short. For example, if you continually give out coupons that are: buy one get one half off, that’s all your business will be to your customers, and you’ll never be worth more. Instead, make sure to give out deals strategically. Your business is worth a lot, so make sure your customers see that too!
Hopefully those tips and are Blab video replay give you some great tips that can help your business price products and services in a way that is best for your success.  There is no “one” answer, it’s a combination of these factors that makes “the price right!”

Here's the full blab with Jessika, Ravi and I. Enjoy!

Remember, you can join Jessika, Ravi and I live on Blab every Tuesday afternoon at 2pm for Magnet Marketer Blab videocast online.

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