How do you set the right price for your product or service? If you’re thinking in terms of the product’s materials and manufacturing costs, you’re going about it all wrong. The right way is to match the price to its value, and then focus your marketing on showing your customers this unique value.
Do you understand the value of your product or service? The value is how it makes things faster, saves people money or time, prevents hassles, or solves problems. It’s not only how your product does this, but how it does this differ from other products on the market.
To define what about your product sets it apart and helps people solve their problems, you should create a UVP – Unique Value Proposition. This is a simple sentence that makes a promise to the potential customer, telling them exactly how using the product is going to improve their lives.
With this statement in hand, you’re ready to start demonstrating your...
What is the right price for your product? The “right price” is whatever your target market is willing to pay once they know the unique value your product offers. Pricing is one of the most important decisions in the product development process, and it’s important to do your research and set the right price from the get-go.
When thinking about pricing your product, it’s important to understand the difference between cost and value. Cost means how much is needed to produce and deliver the product. Value is the perceived benefit of the product to the customer. Prices are based on value. The goal of your marketing is to communicate this value to your audience.
A good way to come up with pricing ideas is to examine the market and see what other companies are charging for similar products. This gives you an idea of what people are willing to pay but also helps you set a standard for pricing. You can set your price just under the...
When companies set their pricing back in the day, the traditional method was to use cost-plus pricing. This approach takes all the costs associated with developing and delivering the product, and then adds the desired margin to set the price.
But in reality, what gets people to buy is perceived value, not the cost of materials. With the ease of obtaining customer data through the internet today, more companies are setting their prices the right way by using customer-driven pricing.
Once the customer understands the unique value of a product, what do they expect to pay for it? What are they willing to pay for it? Customer-driven pricing works because it puts the emphasis on the customer, not the product. You set your price according to their expectations.
Customer-driven pricing works because it reflects actual market conditions. It takes into consideration not only what the individual customer will pay but other market factors like competitor...
How do you price your products? This is one of the most important decisions you have to make when bringing a new product to market. How you set your prices plays a major role in how much you sell. It also gives you a way to set your offerings apart from the competition and customize them to your customers’ preferences. Here are 6 ideas for offering more than just the standard price.
Package pricing offers different levels for the customer to choose from. A Basic Level might offer a simple version of the product without any bells and whistles while the Gold Level offers every feature, priority support, and extra goodies. Your customer gets the option to pay what they’d like for the product and enjoy only the features they need.
The standard logic of pricing is that undercutting the competition increases your sales. This is usually true, but another strategy is the exact opposite – charge more than your competitors,...
One of the biggest challenges for any business is setting prices for its offers. It’s also one of the most important obstacles to tackle, as it directly affects the bottom line. Here are some things to consider to make sure you get your pricing right the first time.
Before you can even consider pricing, there are two factors you need to understand well: your audience and the market.
You should have a customer profile that tells you what problems your audience faces, how they shop and feel about money, and what they perceive as valuable. The goal here is to position your product or service as offering unique value that helps them solve their problems.
The other factor is the market. Get to know the competition and study products similar to yours that they’re selling. This will give you an idea of what the market will pay, and you can position your product accordingly.
The most basic tactic for pricing your offering is called cost pricing. You...
How do you sell yourself to clients? What do you do well that’s unique from other businesses in the market? In order to explain this to prospective clients, you need to clearly understand your unique strengths. Our strengths aren’t always apparent to ourselves, so you have to do some strategic thinking.
Go over your experience working in this area. Where have you spent the greatest time working? Whatever you’ve done most is probably something you’re good at. You’ve accumulated knowledge and expertise by doing it.
Go back over your history and look for your biggest successes. Find the times when you really achieved something fantastic. For each, what was behind the big success that made it happen? Sometimes the timing was good, you were lucky, or it was something external to your business, but look for instances where something you did bring about success.
Don’t just look...
How do you get potential new clients to your website and convert them from visitors to customers? Although you may be active on social media, online forums, and other places online, it’s your website that will have the biggest impact on how you acquire new clients. Here are a few things you can do with your site to help you generate more business.
The written content on your site should be search engine optimized with relevant keywords that will bring traffic to it. This will help with search engines like Google. Use a free keyword tool to find some good keywords and focus especially on long-tail keywords. These are longer phrases and sentences that have less competition.
Add a blog to your site and post helpful, informational content regularly. This will help with search engines by providing fresh content and more keywords. It will also help to show your expertise in your topic area. You can write on topics that are of interest to your...
The hunt for new clients never ends. You need to always be out there generating leads, even when you have plenty of work to keep you busy. It takes time to nurture relationships and you never know when you’ll bump into a lucrative business opportunity. Here are 7 unique methods for finding new clients.
The best business comes from referrals. A happy client tells others about you and the new person already knows the unique value you offer. We usually wait for referrals to naturally occur, but it’s even better to ask for them proactively. Make it a regular part of your business operations. Whenever you receive positive feedback from a client, ask if there’s anyone they know who could use the help too.
Social media is essential for finding new clients, but are you active in groups? There are groups dedicated to every single topic of interest on these platforms. These are places where people get together and discuss common...
A joint venture is a type of business partnership where two or more parties pool their resources to achieve a specific objective. In most JVs, this is done by starting a new business project that’s usually temporary in nature. There’s a good chance a joint venture can help you achieve business goals that seem just out of reach at present.
There are many reasons why businesses from this type of partnership. Chief among them is that it gives you access to the resources of another business. This could mean their skills or expertise in areas you lack, or it could be access to finances or sharing expenses to lower costs. It could also be access to their audience. By working together, you get exposed to their customers and vice versa.
Once you’ve found a joint venture partner and confirmed the basics of the project, the next step is to hammer out a detailed agreement. JVs are...
You have a joint venture project you know will succeed and you’ve identified the ideal partner who’s just the right person to get it done. Now, you need to take the crucial step of writing a JV proposal that will explain the necessary details and get them on board.
Everyone has their own way of writing proposals, but here are some essential guidelines to creating one that’s clear and persuasive.
When explaining the intended outcome and goals, explain them in terms of benefits to the potential partner. Explain not just what the project will achieve, but concretely what it will do for their business. It should be clear to the other party how your project will benefit them.
You should also emphasize how it will benefit both your audiences. Businesses seek to help their customers. Demonstrate to the potential partner how the JV will bring value to the people they serve.
Do Your Research
Before you reach out, you should research...