There is a lot to think about when it comes to deciding how much you want to charge for your products and services.
For business owners, it can be tricky to find a healthy medium between being competitive and making sure you’re generating profit.
In this episode, Christo shares 11 important strategies to assist you with setting your pricing for products and services including:
- Don’t have too many different price options
Too many choices can confuse customers, leading to indecision. Streamline your offerings to make the decision-making process simpler and more effective. - Create contrast in your pricing
Offer tiered pricing options to highlight value differences. For instance, a mid-range option often appears more attractive when placed between a basic and premium choice. - Create a very high-priced product or service
Including a premium option can anchor perceptions of value, making other offerings seem more affordable in comparison. - If you sell a service, try to make it tangible
Use clear descriptions, visuals, or packaged outcomes to help customers better understand the benefits and results they can expect. - Add value to your offering when you increase prices
Enhance your product or service with bonuses, improved features, or exclusive benefits to justify price adjustments. - Know how much value you can add
Understand your audience’s needs and focus on delivering solutions that align closely with their expectations. - Do the math and know your numbers
Calculate your costs, margins, and break-even points. This ensures your pricing is sustainable and profitable. - Review competitor pricing
Stay informed about industry standards to ensure your pricing aligns with or strategically positions you in the market. - When you raise your prices, look after existing customers
Implement loyalty discounts or phased pricing to show appreciation and retain their trust. - Use the numbers 7 and 9 in your pricing
Odd numbers often psychologically appear more appealing or create a perception of better value. - Consider how your pricing will impact your perception
Your pricing reflects your brand. Premium pricing can convey exclusivity, while lower pricing might attract price-sensitive customers but could devalue your brand’s image.
Make sure to also join us at the next Blast-Off Marketing workshop to map out your one-page marketing plan. This is the link to register (no cost!): https://basicbananas.com/virtualsummit
Or apply to join the popular Clever Bunch program to accelerate your business growth. https://www.basicbananas.com/cleverbunch
Happy listening!
Here’s to creating ripple effects of brilliance everywhere we go!
The Basic Bananas Team
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