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5 Key Steps to Pricing Strategy

Watch this video for a framework for you to follow when creating your pricing model, broken down into five easy steps.
The pricing strategy framework has five steps to follow and we’re going to walk you through each one of these steps. The first step is researching your competition. And this is going to actually allow you to establish a range for low to high range of your pricing strategy and it’s a good exercise to it doesn’t mean that you have to fall within that range. It just means that makes giving you guidance as to where you need to go. The second step is know your margins. This is the most important step that you can possibly do because you have to know what your costs are, your true costs are in order to establish pricing, otherwise the whole thing doesn’t work.
You have to know your margins and what I like to say is the margins create actually the floor for your pricing. That means that’s the lowest price that you can charge. You can always go up from there. But you have to have a standard margin you have to at least make that standard margin in your business. Otherwise your business may not be feasible. Third is creating a pricing profile and this is a look at all the inputs that impact pricing, all those influences out there. We’re going to walk you step-by-step through how to actually create a pricing profile. This is going to be very very helpful for you. The fourth step is picking a model.
We talked earlier about the models. Cost-based, value-based, Market-based. We got to pick a model and use that as part of our overall strategy. And then the fifth one is we want to analyze all the results and we have to set our price and those are the five steps and that’s going to lead us to creating an ideal price for your product or service.

Here is a framework for you to follow when creating your pricing model. We have broken this down into 5 easy steps to follow.

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How to Create a Profitable Pricing Strategy

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