It has nothing about offering cheap prices. It is about strategy.
Does your pricing compliment other parts of your marketing strategy?
Or is there a disconnect?
Each element of your marketing strategy plays its part when you want to get new customers.
If they are in perfect harmony, it makes it simple for potential customers to move along the buying decision process.
When they aren’t it makes it harder for you when attracting customers.
And it adds complexity to your business and for your customers.
The disconnect and complexity creeps in when you look at the different elements in isolation and forget to see if they work well with other elements.
For example, it is not uncommon to see businesses offer quality products or services. This quality sometimes goes overboard to develop the relationship with new customers.
However when the same businesses have a low price or lower price than the rest of the market it doesn’t fit well with the high quality products or services.
To potential customers it may look like a bargain, however problems can arise when you want to increase your price later on. Naturally customers would expect the quality or other aspects to increase as well.
As well with a low price and high quality you can be attracting the wrong type of customers.
Are they in harmony?
High quality + low price = complexity
When you develop your marketing strategies you want to get rid of any complexity as it can affect your business growth.
If you find there is a disconnect you may want to ask yourself why.
Is your pricing is one of those funny things especially in services. And it can be your perception of what customers are prepared to pay versus the reality of the market.
For some of you the level of your pricing may be a sensitive issue and if it is you may want to ask why that is. If you sell a service ask yourself if you would be as sensitive if it was a product you were selling.
When you want to get new customers price plays a part, it always has and today as customers are savvier they do look at what they will get.
The main thing is do not let your own perceptions dictate what your price is.
There are ways to be flexible with your pricing to get new customers and one is to offer different options. It can still fit well with your strategy and attract customers.
Be objective when you develop your marketing strategies, make the necessary changes and you may find you have the business growth you are looking for.
As always over to you. How do you set your price and do you look at all factors?
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