If your small business – and by extension, YOU – are potentially available 24/7, how do you determine what is an equitable, livable fee to charge for your product and/or service?
Determining what to charge is a challenge for any business, at the beginning or in product evaluation. There are real-world consequences in charging too much or too little. And what about the competition? Do you want to beat competitor pricing, or is there room to value your wares higher?
For clarity you’ll want to:
- Establish what competitors charge;
- Figure out the time and energy for getting product/service to market; and
- Take other factors into account (administration, production, promotion, social media, etc.).
Now it’s time for you to REFLECT!
When thinking about pricing your product or service, carve out time to do nothing … except thinking about pricing (AFTER researching and gathering viable options). You, the business owner, will benefit from deliberate, thorough due diligence conducted prior to product/service rollout.
What about EXPERIENCE … namely yours?
Part of the final decision must incorporate YOUR experience – as owner and industry expert – which plays an integral role in the product pricing equation.
Please share your thoughts on the difficulties of product/service pricing, as well as the experience factor!
And be sure to read the next two articles in this series: