Pricing is a combination of science and art. We cannot focus on science without art or on art without science when we are pricing our products and services.
Do you think that your price is one of the most important elements in your business?
Do you know that everything that you do in your business impact on your prices while on another side, your prices impact your offers, sales and value perception of your customers?
Let’s see some of the frequently and most disastrous mistakes that you can make.
1. Lack of analytic approach in your pricing techniques
Prices are based on numbers. It’s the fact. That’s numbers comes in the form of costs, sales, market… All that numbers have or will have an impact on your prices. Because of that you’ll need to analyze such numbers and appropriate conclusions to include in your pricing strategy.
2. Too much based on “me too” strategy
Although your competition will impact on your pricing strategy, they are not the most important part in your decision-making process. Many entrepreneurs simply to avoid making their own analysis decide to copy the prices from the most important competitors. That’s “me too” strategy.
But, what if your overall offer is better than competitors? What if your costs are bigger than your competitors? What if your quality is better? What if your offer have additional values?