Pricing a product or service to achieve a business's goals is an important and often overlooked concept to drive customer behaviourr. This section contains posts that describe key pricing strategies entrepreneurs need to know to have a successful business.
Your Pricing Strategy Doesn’t Have to Be an Entirely Emotional or By-The-Numbers Exercise. The Most Important Thing Is to Offer Quality Products/Services and Ensure That Customers Perceive That Doing Business with You Is on The Right Side of the “Risk Vs. Reward” Equation.
As consumers, we have a very hard time recognizing a business’s investment in expensive and specialized tools, or paying for a person’s knowledge or acquired skills. All they see is that they are paying a lot for something that didn't seem too difficult for a person or business to deliver.
Consumers have been conditioned to focus more on what they are spending than on what they are buying. Consumers buy things today not because they need them, but because they are convinced that they can get it for a great price.
If you are facing stagnant or declining sales on one or more products and services, it may be because the way you are either packaging or pricing (or both) is not resonating with your prospects and customers.
One of the biggest obstacles that prevent a buyer from making a purchase decision is the fear that they will pay too much. From the seller's perspective, there is also the fear of pricing a product or service too high or low leaving money on the table.
In a perfect world, what a customer spends for something should be based on their opportunity costs. However, customers are irrational when it comes to money. By distorting a customer perception of their opportunity cost, a savvy business can make the customer spend more and be happy to do it.