Pricing and Value

Pricing and value should go hand in hand. The right pricing strategies will be based not only on competition and your market, but also on the value of your product or service.

Today's customers will often pay more for courteous service, personal connection, a relaxing atmosphere, or other factors which you'll build into the value of your product or service.

You could take the stance of a classier value proposition than your competition. This works when price is not the major concern for your clients.

For instance, they may be more concerned with reliability, special features, unique benefits, brand recognition, speed of service, helpful and friendly employees, specifics of your product line and of course, location, location, location. (If you must be downtown, what would happen if you offered free parking to customers to came to see you, for instance?)

Other Ideas for Building Value

If you offer a boutique-style service or product, how much inventory do you need to have on hand?

If you provide a service, how many hours (your inventory) can you dedicate to the business? No more than 24 hours a day! So your per hour fee had better cover enough outgo to leave some income – and it must fit your target market's expectations.

What if you offered bonuses? Two for ones? Discounts?

In a recent study it was found that only a fraction of a percentage of business people truly understood how much business they would need to get in order to make up for even a small discount. The number would shock you.

When it comes to pricing and value, you have to be sure you achieve top of mind awareness in your market for your particular product or service. In other words, you want your target audience to think of you when they think of your product. And they should do so because YOU offer the very best quality.

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