Pricing Practices For Small Businesses
One of the mayor tenets in marketing is pricing, and because pricing plays such a mayor role it is vital that you learn some key principles to help you properly price your produce your service.
One major factor in pricing is the fact that price is all about perception. If the perceived value of a product or service is higher then the price of the item there will be little price resistance. Therefore as marketer and business owner you need to make sure that you increase the value of your product or services so that it exceeds the cost one is asked to pay. In today’s episode you are given multiple way to increase the value of your product in your client eyes.
You will also learn the basic pricing practices that that small business apply and which one can yield the best return for your business and marketing efforts. And we will touch on the myths small business owners have about marketing.
Key points in this podcast are the following:
- Pricing can be a great positioning tool for your local business and unfortunately many people will gravitate toward the bottom of the price range because they feel that the large variety of people base their buying decision on price, doing this will lower margins and place your business in a dangerous financial position if there is ever a drop in sales.
- Focus on value: if your focus on value is presented in your marketing then you will not have to lean heavily on price and can charge a higher fees.
- Simply lowering your prices as a marketing strategy is “Lazy Marketing” and often will not yield the return you desire. Using discounting is only effective if it in the context of larger strategy when it is somewhat of a loss leader and you can make it up through repeat billing or higher backend services.
I hope you will enjoy this podcast and if you have any questions please leave them in the comment area or connect with me on social media such as Facebook, twitter, Google+ or LinkedIn.