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How to Make Sure the Price is Right

Setting the perfect price for your services is an issue that frustrates many small-to-mid-sized business owners. You want to make sure you’re selling your product for the right price, something that doesn’t overcharge customers but still draws in the amount of money you know you deserve. Here are some tips on how to figure out exactly what to price what you’re selling for the largest potential gains.

Make a Clear Business Case

Consumers will only shell out money for a commodity that they know is going to be worth it. Make it more than clear in your marketing and sales strategies how much your product or service will help the buyer in the long run. Even if your product is more than worth the price you’re selling it at, consumers will not buy it if they have no clear idea what kind of profit they’re going to make off of it.

Understand Your Market

Pay close attention to who’s buying what you’re selling and exactly how much they’ll buy it for. If you price too high, you’ll cut down on your potential market; if you price too low, not only will you be selling yourself short, but you’ll make your brand seem cheaper and less desirable than it may actually be. Research other, similar brands and what they price for their products, and determine if your quality is worth more or less.

Test and Experiment

Don’t be afraid to experiment with your pricing and see what works and what doesn’t. If you interact with the market, the market will talk back to you. Starting by making subtle changes in prices will help you learn what will make you more money and garner more business. Be willing to walk away from lowerend business to climb higher once you attain the means and quality.

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