Price is often considered one of the first factors a customer thinks of when deciding to purchase a product or service. If the price is too is too high, people will not pay it; if it is too low, people may be suspicious of the quality and value of what you are selling. This is why it’s critical to set the right price for products and services in order to keep the business afloat and profitable.
When setting the price for your product or service, you should first consider the unique value that it offers to your customers. This value will depend on how your customers see your product i.e. whether it’s a need or a luxury. Regardless of the category, your pricing should be in line with the benefits of your offering in regards to the target market, whilst also considering the prices you incurred delivering those products and services to them.
This infographic from Business Coaches Sydney provides a step-by-step breakdown on what to consider when pricing your products or services to ensure you get it right.