Even the most unsophisticated business minded person knows that price is everything to most consumers; and of the rest, it’s still pretty important. Strategies for how to price goods and services are key to the success or failure of any business. But simply striving to undercut all competition can be a recipe for disaster. If you set pricing below your cost to deliver, only do so if you’re targeting a certain market segment with a clear goal in sight. Ensure that, in the end, you’re still standing.
Key Takeaways:
- Selling goods or services lower than cost can harm customer trust, and trigger price wars with competitors that few can win.
- Charging a premium can signal to customers you value quality and have faith what you’re offering is worth it.
- Subscription pricing can not only provide a regular revenue stream, but act to more closely bind customers to you.
“The way you price your products and services can mean the difference between growing your company or creating problems that you can’t recover from. This means that figuring out the best pricing strategy for your target market has many implications for your business.”
Read more: https://insidesmallbusiness.com.au/growth-development/pricing-weapons-for-growth
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