Setting the price for your service is probably the most important thing you can do but it’s also the toughest because there are so many variables to consider. So how do you do it and how do you adjust the price over time if the market changes or you think the price is not correct?
There are many theories and many paths to consider but the results inevitably come down to the seller and the ability to convey value. Let’s face it, is a Mercedes Benz really worth 3 times as much as a Honda Accord? Is that based on the cost of manufacturing or the years of building the brand?
However you price your product, sell it with conviction and chances are the buyer will sense the value. Your price reflects the value so the higher the price the higher the perceived value if you are doing your job.
You will make more money if you can sell at higher prices too!!!
Brick
People will always complain about your price. Even if you charge $1 they will think it’s too much. Biggest thing I try to keep in mind is that people are not buying a product or service they are buying a result. At the end of the day I might think $200k is too much to pay for a bi suite but when you remind me that I’m buying real time visibility into my organization and a single point of truth that will make me look smart it’s hard to put a dollar value on that