Pricing products and services is not easy, and unfortunately most people get it wrong
Pricing your product or service is hard. And most people get it wrong.
Here’s the thing about pricing…if you can raise your price just $1, and don’t have to change your cost basis, you drop that dollar right to the bottom line.
That’s pure profit. Money in your pocket. Cold hard cash.
Yet, many people don’t get pricing right. As a result, they leave a lot on the table. I want to change that by helping you think through your pricing better and, hopefully, find money you can drop right into your bank account.
So why don’t people get pricing right?
First, they think about cost, rather than value.
When most people start thinking about how to price their product or service, they start by figuring out how much it cost them to make or deliver it and then they add some “reasonable” margin. And while I strongly suggest you know exactly how much your product or service costs to make or deliver, it shouldn’t be the basis for your pricing strategy.
Instead, start with how your customer will value your product or service.
How much more money will they make? How many expenses will they be able reduce? How much time will they save? How much easier will their lives be? How much better will they sleep at night?
And then ask: what are these advantages worth to them and that’s the basis for pricing. Focus on value delivery rather than what it costs you to deliver.
Creating a value-focused mindset in your company will have other benefits as well. As you get clearer on what you do that adds value, you also learn what doesn’t add value and you can remove it from your business. This saves you money and makes it simpler for your customers.
I talk through several other points in the video. If you’re interested, check it out here. Or, if you want to see all of the points, check out the article I wrote for Inc.com on this recently…
Most Companies Get Pricing Their Products and Services All Backwards. Here's How to Get Your Right
Need help with pricing strategy?
Let’s set up a call to talk through your product or service and how you can increase your price by focusing on the value you provide. You can schedule a call by clicking here.
I’ll close by including one of my favorite pricing quotes…
“You know you’re priced right when your customers complain—but buy anyway.”
~ John Harrison
Bruce Eckfeldt
bruce@eckfeldt.com
P.S. Whenever you’re ready... here are three ways I can help you grow your business faster, and with less drama:
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