At what price?
How do we approach price for our own businesses and when we look at our suppliers? How do our perceptions of value and price play a role in our decision making? Unraveling our own beliefs and response to price is also an important element in understanding sometimes where we may be getting it wrong. Here's our thinking...
Deciding the price of your services or products is often a complex mix. If you are selling a product you will be researching your nearest competitors’ prices, your production costs, what makes your product different and how that has a bearing on what someone is prepared to pay. If you are offering professional services, your expertise, experience, level within your industry, results and reputation all feed in to an amount below which you won’t get out of bed.
Markets, economics, locality and scarcity all feed into judging at what price we sell, but don’t forget the most important person in the mix, your customer. Their perception of you, your services or products is also key to their market value.
Thorough research of your core customer: their wants, desires and worries enables you to better understand, from their point of view, what they are prepared to afford, not only to sleep easy at night, but also feel validated in a good buying decision that brings the benefits they want.
People expect to pay for experts.
They expect to pay for quality and good service.
They expect and gain reassurance from paying for value.
Don’t let them or yourself down.
After all, ultimately, “The price of greatness is responsibility.” Winston Churchill
Find out more about the Principles of Profit.