Setting Your Pricing

Price is one of the 4 P’s in marketing (Price, Product, Promotion & Place). This, in simple terms means putting the right product in the right place, at the right time and at the right price.

Price tends to have less focus than the other ‘Ps’, which is a shame as Price tends to have the biggest impact on profits and can implemented more quickly than other forms of marketing.

On the flip side, if your pricing doesn’t add up, then the rest of your marketing won’t matter. Therefore ‘Price’ determines your sales and survival of your business.

Price also helps to shape the perception of your service in your client’s eyes. Remember the basic principle that a low price generally infers that of a lower perceived value. A higher price is associated with a higher perceived value.

 

Setting your price(s)

 When it comes to setting your price(s) here are 3 questions you should consider:

1/ How much does it cost to deliver your service? How much has this increased over the past year?

2/ What is your client’s perceived value of your service currently?

3/ If you raised your prices (beyond the rise of the cost of living, known as inflation) how can you increase the perceived value that you bring to your market?

Here are some ideas to get you thinking:

•  Package your services (if you charge an hourly rate)
•  Review and tweak your current programs/packages by adding more value ( at a low cost of time and money to you, but would significantly help your clients)
•  Introduce a new premium package
• Raise your profile and expertise through any awards that you’ve won or any qualifications you’ve achieved.
• Use client testimonials in your marketing
• Upgrade your business branding and website
• Adapt or introduce a new ideal client/target market

 These are just ideas, I don’t want to overwhelm you so pick one or two that you think would have the greatest impact.

Here’s to your success!

Want to read more about pricing? Check out my post on ‘3 Empowering Pricing Questions’