How to Make Sure Your Pricing is On Point
Updated: Jan 31, 2022
Hey girl! Just like that it’s already the end of the first month of the year, and I’m sure you’ve thought about all the new products and services you want to add to your product/service line. But have you given deep thought to your pricing breakdown? If you haven’t, you know I’m always here to give you some tips that help you propel your business.
Many parts of our businesses need attention and it’s definitely a task when it comes to our pricing. I used to often think to myself “will they buy this for $x though?” or “what if they say it’s too expensive?” If you are having these thoughts too, stop right now!
In this post, you’ll get to take away some valuable information I’ve pulled together just for you. We’ll talk about:
Things to consider when pricing your products/services
What to make sure you know before you finally price your products/services
Then, only members of The Clique will have access to our Pricing Strategy FREEBIE! If you still haven’t joined The Clique, you’re missing out on some amazing goodies. Visit the log in section at the top of our website to join and get the first squeeze on our FREEBIES.
So grab a pen and paper, and get ready to take notes to help you transform your pricing strategy! After you’ve finished reading, check your email for how to get your FREEBIE or join The Clique to get access to all other freebies to come.
4 Things to Consider when Pricing your Products/Services
#1: The time you put into the development stage
There’s no doubt that it takes time to properly develop your product or service, so why aren’t you considering this? Quit only thinking of the obvious costs and raw materials. Consider the amount of hours, weeks, even years that you continuously created and developed your prototype before putting your product or service for sale in the marketplace.
#2: The cost of your equipment and tools
Some businesses require higher investments than others, but no matter your investment, always give thought to all the things you need in order to produce your product or service. Also consider the time frame and lifespan associated with the equipment/tools. Are these items long lasting pieces of machinery (e.g. a computer or fridge) or is there the chance of them going bum (e.g. glue gun or camera)? How often are they being used (i.e. daily, when stock runs out etc.)? Do you need to have more than one on hand or money saved in case a piece of equipment or tool fails without warning? If you aren’t sure, write these questions down, give each some thought and then note the answers and the equipment or tools you may need to consider.
#3: Utilities you need for production/completion
Each product or service you provide uses some type of utility whether it is electricity, water or internet. I’m using the internet to type this post for you right now. Sometimes we overlook these things and we shouldn’t. I know this sounds difficult but I promise it’s not. On your notepad, write down these 2 things and give them some thought.
On average, how long does it take for you to actually produce your product or complete your service.
On average, how much is/are your monthly utility bill(s).
Now keep these figures in mind for when you’re developing your pricing strategy.
#4: Time you spent studying and researching
The time you spent gathering information about all the parts that help to make up your product or service, you can never get back. It doesn’t matter that you can complete the product or service in 30 minutes. Consider the weeks or years you spent to take that course or complete your degree or certificate. Think about not only the monetary investments, but the effort you put into making your product or service- something your customers love.
What to Make Sure You Know Before Finally Pricing Your Products/Services
So let’s get deeper into this pricing thing! Now you’ve considered the above and have noted all your costs, it’s time to make sure you know what truly makes your product or service stand out. These 3 key areas are not directly linked to your costs, but will help you understand the meaning behind your price point and strategy.
#1: Knowing your product’s or service’s worth
Apart from knowing the actual cost of your product or service, also consider what your brand’s product/service means to your customer. Ask yourself:
What do they think of when they see your product/service (e.g. one of a kind, mediocre etc.)?
Is buying your product worth it?
If yes, why?
What makes your product/service different (e.g. premium ingredients, customer service, packaging etc.)?
What makes it worth it (e.g. durability, solves customer’s problems etc.)?
#2: Knowing the value of your product/service
Knowing what value you provide to your customers is extremely important because it’s what influences them to actually spend money on your product/service. Think of what your product/service promises your customer. Make sure that whatever value you decide to offer, it matches your price. For example, She Markets WEC is a holistic brand for females and female entrepreneurs. The value that I’m offering is that the brand caters to many aspects of these individuals’ lives. I am promising them that I will help them improve their lives by offering them products and services to help them do so.
#3: Know your focus and audience
Target audience, target audience, target audience! It’s one of the most important areas of business you must consider. Why? Well, if you don’t know who your ideal customer/client is, then you aren’t able to price your products/services properly. If you haven’t thought about who they are, now is the time before you go any further. Think to yourself whether you want to offer high end products/services, if you want to offer affordable products/services or both. Then, this will help you to properly price your products and define your target.
So after all of the note taking, I hope you were able to get a better understanding on how to price your products and services. Don’t forget I have a FREEBIE waiting for you if you’re a member of The Clique!
Thank you for reading, liking, sharing and commenting on this blog post. I wish you a great week ahead!
Xoxo,
Christal-Ann