Top 6 Mistakes To Avoid When Pricing Your Products
The price you give your product can either attract or repel customers. So you need to experiment and avoid the common errors that many startups and businesses commit over and over again:
6 Mistakes You Need To Avoid
Mistake #1: Prices are conjured without customers. All the answers are in your customers’ heads, and that is why experts recommends taking 3-5 daily customer meetings.
Mistake #2: Prices are set in stone, not in motion. When it comes to setting a product’s introductory price, many founders fall into the trap of picking what should be a pricing starting point, but sticking to it as if it’s a permanent solution.
Mistake #3: The price is too low. According to Gaffney(a professional marketer), he said his very rare for him to encounter early-stage founders who’ve priced their product too high. This instinct is especially problematic when paired with the rampant belief that it’s very hard to raise prices. If you’ve already started from a low price and are hesitant to raise it over time, you’re capping your growth.”
Mistake #4: The pricing structure is overengineered. Many customers are used to buying in a certain way, such as a monthly fee or per transaction. Do not try anything too far afield, such as charging per API call or charging per-location instead of per-employee, as it can be a high barrier to understand and adapt.
Mistake #5: Choosing a random price for service job. Nigerians do this a lot, and it’s very common among those providing services. When the customers request for quotes, instead of taking the time to ask for client’s specifications before pricing, they just conclude an imaginary price in their head. This has lead so many people to police custody.
Mistake #6: Doing a job with quality depending on the budget you’re given by the client. Many people just collect any job they see and provide a quality in relation to the amount they were paid. This is very wrong. Always provide quality service, and if a client could not afford it, find a better client. You must understand that not all clients are for you.
The bottom line here is that speaking to customers about pricing can be stressful. But I promise you that not talking to them and attempting to interpret their silence is more excruciating.
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