pricing-silver-bullet

Companies approach Atenga all the time asking us, "What is the best price for our product"?

What is the best price for my SAS product?
What is the best price for my automotive accessory?
What is the best price for my kitchen appliance?

And the reality is, there is no “best” price for any product or service unless you correlate “what you offer” with “customers willingness to pay”. Unfortunately many companies base pricing out outdated, dispelled "how to price x,y,z" methods.

Yes, there are rules of thumb. For instance, if you are in the SAS market, you should follow the guidelines of the - good, better, best strategy, but there are not any rules against fixed prices, or that you should charge $10 per month if it is this type of product, $100 per user, $50,000 a month if it is for a company...

What it boils down to is research and gaining a deep understanding of what customers are willing to pay for your service, your unique product, your differentiators, and your marketplace.

The lesson to learn here, is that there is no silver bullet to pricing. The answer is never, “what you see is what you get” - it is more often than not found in what you don’t see. This has to come from pricing research & competitive research. This insight then gives you the opportunity to understand how you can better differentiate yourself in the market place, ultimately giving you pricing power.

The leverage you gain from this insight helps you price right. It also helps you decide where to spend money on marketing, how to structure your messaging, and in many cases provides you with a product roadmap. Without this insight you are simply playing a guessing game. You run the risk of leaving money on the table and exhausting funds in an effort to find what works and what does not. 

That is how you confidently choose the right price. 

 
Posted
AuthorPer Sjofors
CategoriesBusiness Tips