Common Pricing Strategy Mistakes

The most important thing that you can do is have a justify pricing strategy. It can make the difference difference between success and failure in your business. I want to give you a couple of questions that I want you to ask just to get your brain going and be thinking about this.

First question is: how is my competition price? What’s the price of my competition? How much demand do I have for my product or service? What supply is out there? We need to understand that as well. How about the value that you’re delivering? Unfortunately, most entrepreneurs actually underestimate the value that they’re delivering and they underprice their product or service. I know that it sounds strange, but that happens over and over again. I see that happening all the time. What are other Market forces that you need to consider out there (and there are many) other Market forces that go into your overall pricing strategy?

Now, what I want to do is I want to have you understand a couple of mistakes that entrepreneurs make as we get started so that we can avoid them. First of all, guessing at the pricing. I mentioned this one before I want to make sure we understand it again, that you cannot guess at the pricing. It is the worst thing that you can do. “It feels like it should be $20 or $30” No, we actually don’t want to do that. Not researching your competition. So many people go in and establish pricing based on their gut as supposed to actually looking at the competition. It’s going to tell you a lot if you can look at your competition.

Pricing too low and leaving money on the table is a huge mistake, pricing too high and not having enough demand for your product or service can also be a huge mistake as well. And then not understanding the true value that you’re delivering that is probably one of the most important things, when you understand what you’re delivering at that value that you’re coming out to the customers with and in the market makes all the difference in your pricing strategy. And then finally ignoring customer feedback. That is one that amaze me all the time. The customers are telling you, now, they speak very loudly, whether they’re saying it with their mouth or with a credit card.

They speak very loudly in terms of what your price should actually be. So be thinking about what your customers are saying, whether they’re buying or not buying and actually solicit their feedback as well. I think it’s one of the best ways to understand if your pricing strategy is working or not. So, what we’ve done is we created a framework that go walk you step-by-step through this entire process and make sure that we create the best possible price for your business.