Pricing is complicated, and if the entrepreneur gets it wrong, it’s a game over. Set the price too low and forget profits. Price things too high, and it will send away customers. The good news is that there are different ways to set up prices for a small or medium-sized business. Understanding pricing strategies is the best way to approach the market. Moreover, the entrepreneur needs to understand the customer and their willingness to pay for the product. Also, the entrepreneur needs to know what the competition charges for the same product. Besides that, one needs to factor in fixed and variable costs.[Read more…] about Pricing Strategies Every Entrepreneur Needs to Know
With the advent of urbanization and globalization, entrepreneurs started sprouting across the globe. From small-scale market vendors to large multi-company conglomerates, selling has been one of the topmost business ventures of today. Selling internationally can offer great growth potential for a start-up business and can give you an edge over your competitors. It can also offer ways to diversify your business.
However, international selling can be a little bit complicated than the local one. One of the main factors to consider in selling is how to deal with taxes, especially value-added taxes (VAT). This list will highlight what you should know about VAT, how to price your products right, and why is it important to consider VAT in your product pricing.[Read more…] about Why You Should Consider VAT in Your Product Pricing
Do you know how to implement price setting process that will ensure the right prices for your products and services? The price for which you will sell your products or services is one of the most important factors of your business success.
You can have a great sales process, or a large customer base, and make a big amount of income. But, still, your business does not make a profit. The biggest reason for this is the wrong price of the products or services you have set up.[Read more…] about Your Ultimate Pricing Guide: 10 Steps for Price Setting for Your Products
One of the biggest problems for entrepreneurs is the price as the only competitive differentiation from competitors. So, how you can effectively compete with cheaper competitors?
Yes, this is one of the biggest problems, but only for companies without enough knowledge about possible solutions when it comes to their pricing strategies. Generally, there can be several things that you as an entrepreneur could make if you want to compete with such competitors without losing your profitability rate.
The revenue model is an important part of your business model because everything that you create in your business model will need to be evaluated through revenue model.
The success of your business model and success of your small business often will be based on the success of your revenue model. If your revenue model works, it will generate you enough income to cover all the costs that your small business will make, but also will enable you enough profit with which you can finance the future development of your company.
Your small business in large part will depend on creating and shipping value to the customers. There are really strong correlations between your ability to create and ship exceptional value to your customers and the success of your small business.
The important thing when we talk about businesses is their pricing strategy, but also their ability to increase prices in order to ensure better profitability for them. Knowing and using different pricing strategies is not enough to ensure that your products and services will sell in enough quantity that will enable your business to make maximum profit. On the other side, what strategy is the most applicable to your small business will depend on other factors.
Here, I want to mention some of these other things that will have a really big effect in choosing and shaping right pricing strategy for your small business.