Pricing your offer
Competitor analysis is very important. You need to know what your competitors are selling similar items or services for. Compare what they do and what you do and find your point of difference.
Surveying your customers. Don’t be shy to ask past customers what they would pay for a product or what they would change. This information is very important. It is a good idea for the survey to be anonymous. You will get a more honest response if it is anonymous. BUT, be prepared for negative feedback. Criticism can be constructive.
Beef up your value. Give them a cherry on the top. This is especially important when everyone is selling the same product for the same price. You need to offer that little bit more to sway their decision your way. I.e. A free cleaning pack etc
Don’t forget to include the value of your precious time!
Pricing your time is very important. Your time is valuable – Time is money! Accurately work out exactly how much of your time that product or service uses. Don’t forget to add the preparation time and follow-up time. You need to include your administration and marketing costs as well. The software you use, email programs etc. Then your profit is added. You must be realistic about this. What do you need to survive?
Value comes at a cost. Don’t price yourself too low. You don’t want to look cheap and nasty but you also don’t want to price yourself out of the market.
Take into account your service charges, such as PayPal or Stripe. People often forget about the service charges and debit order costs when discounting a product for upfront payment etc. These costs are real and can add up to a lot. Have a look at how much you pay in bank charges and service charges in a year, you will be surprised.
Have a price list and keep it on hand. Some say it should be on your website, others say you should not. This is entirely dependent on your product and service. But there is nothing worse than fumbling for an answer when asked the price of something. You need to be able to say your price with confidence.