Pricing...

Filed in archive Marketing on March 25, 2008

Are you pricing your services right?

The After the Launch blog has an interesting entry about pricing your services correctly. Now this is geared toward service base businesses but can also be of use to retail businesses to figure out if they are pricing their products right.

Pricing is probably one of the toughest things you will have to do. First of all you are usually afraid to price your products too high and loosing business over it. On the other hand you can also price your products too low and get lots of business but not make any money off the products you sell. So what do you do?

You first need to know who your market is. Are you marketing to people looking for value for the dollar or are you marketing toward people are only looking to get the lowest price even if they get poor value for the dollar because all they care about is the price. Think about the major retailers and who they market toward. If you are looking at the former market you may consider companies like Nordstrom and the latter market screams Wal-Mart.

One thing to always keep in mind is that once you are pegged as one type of business it is hard for you to change your market overnight, just ask both of the companies mentioned as they have failed miserably at trying to change their market.

So remember to be very careful when pricing your product or services.