Trying to decide on pricing?
Identifying what to charge can be challenging when you are getting started or developing a new offer. Here are some perspectives to consider when gauging where your pricing should be...
How does your pricing compare to the value provided?
What impact will your solution have for your client? Increased sales? Reduced cost? Time Savings?
Pricing is relative to the value provided...so, what percent of the total value is your pricing? For example, if your solution costs $1000 and helps the client generate $1 Million in sales...then relative to the value, your solution is a relatively minor investment.
Test some price ranges
Talk with some client and/or partner contacts you know and trust about price ranges you have in mind. Remember, clients will only “hear” the lowest number...so be sure you are ok with that number. You can ask:
- How does the range compare with other offers they have received (softer way of finding out what competitors are doing)?
- Given the value your solution would generate, how do they feel about the range you have in mind?
What are competitors charging for similar solutions? How are the competitors doing with that pricing? Crushing it? Struggling?
Doing the homework will help you establish pricing that you can justify and be confident in offering!
Marc Kitz, Sales Coach
Checkout my Sales Coaching blog - https://marckitz.com/