Would you like to know what to charge for your products, so you can build a profitable business?
All you have to do is…
Don’t be the cheapest. Be the best.
Because when you’re the best, you can charge whatever you want.
How do you become the best?
Today, I’d like to share 5 secrets that will help you know what to charge for your products, so you can build a profitable business.
There Will Always be Someone Cheaper
No matter how low you go, another company will always go lower. A larger company that has been in the marketplace for some time will have more cash on hand, and will likely have more freedom to drop their prices when they want to. Getting into a pricing war will only cause you stress and potentially ruin your business. Instead, give your customers something besides a cheaper price. Something better than your competitor is offering.
Customers Pay More For Quality
How many times have you bought a cheap, poor-quality product that has fallen apart after just a few uses? For example – a cheap pair of sandals that gave you blisters, or a cheap watch that stopped working? When you’ve done this a few times, you quickly figure out that cheaper isn’t always the best deal. They know a product may be cheap right now, but it’ll cost more money in the long run when they have to replace it again and again.
Segment Your Market
Focusing on a smaller segment of the market can make more money than focusing on a big segment. For example, the owner of a building company that specializes in luxury custom-built homes might decide to focus on high-income earners. This will be a smaller segment of the market, but this lower volume will end up yielding a higher margin. You’ll also avoid pricing wars with other competitors, which will in turn help with your growth, infrastructure, and overhead costs.
Improve Your Credibility
We tend to buy on emotion, not logic. And that’s why we think wine tastes better when it costs more. We assume that something with a higher price is better quality. The challenge your business faces is justifying your price according to the quality of your product. When your product arrives on your customer’s doorstep, they should feel they got their money’s worth. Market your product as great, and make sure it IS great. Then you can charge a higher price – and receive the credibility for it.
Don’t Let Fear Hold You Back
No matter what your price is, you’ll always be too expensive for someone. The customers who can’t afford you aren’t necessarily the customers you want. They’re the ones who will criticize more, ask for discounts, question your value, and continually look for something cheaper. In contrast, when you RAISE your prices, you’ll become more attractive in the eyes of your ideal customers. That is – the ones you want, and the ones who want YOU.
If you would like help with knowing what to charge for your products so you can build a profitable business, I invite you to join us inside Alphapreneur, which is a private club for entrepreneurs that will take you by the hand and help you get the results you truly want in your life.