Unfortunately, there isn’t a single equation to determine the best price. However, pricing usually involves considering certain key factors, including understanding your target customer, tracking how much competitors are charging, and knowing the relationship between quality and price.
Ten successful entrepreneurs from the Young Entrepreneurs Council reveal to Inc Magazine, “10 Ways to Raise Your Prices Without Losing Customers”.
We expand on a few responses below:
Customers take a significant risk hiring a startup to fulfill a meaningful job within their organization. Being honest with those loyal customers is important. After all, acquiring a new customer is much more expensive than retaining one.
If your product or service delivers on the sales promise, explaining your costs should be a simple task.
Customers always want to know they are getting a good deal — or good value for the money they are spending on your product or service. However, don’t love your customer too much, that it impacts your overall business. We explain more about this here.
As your business develops, your product should be worth more.
Give customers a chance to buy a higher-tier plan before prices go up.
Unfortunately, there are outside factors you can’t control that impact pricing. One thing is certain, setting pricing shouldn’t be taken lightly, nor set and forgotten about.