Pricing is about satisfaction. Satisfaction for your customers, your business and you as a person. Its about maintaining the balance between these three parties. To create a plan that will favour both the business and the client without hurting your conscious, you will need to be more strategic. But first, there are some factors that will determine the must dos. things like;
a) Cost of production
To avoid loses the cost of your products should not go below the cost of production.
b) Competitors
After doing your math, overpricing can seem like a good idea but this can be affected by how your competitors are doing their pricing . If your price exceed theirs. There is a chance you will be loosing a lot of clients to them.
c) Brand image
There is a mentality that cheap products are fake. That is one reason why businesses give quotes to some of their clients. You might feel that the price in the market is too high but you have to go with it to protect your brand’s image.
d) Demand
When the demand is high so should the price. To satisfy demand, the business might incur extra costs. Mostly because of the extra labour needed and the increase in production.
c) Quality of products
There is a difference between affordable and cheap items. Not all affordable products are cheap. If you wish to make your quality products affordable, it’s still okay. There are priceless products that are free. Otherwise, It’s good if you price your products according to their value. It will help you gain trust from clients.
Going about the pricing
The point is to make the pricing part as easy as possible yet putting into consideration all the factors that we just mentioned.
1. Create pricing plans
Instead of pricing your products/services as a whole, why not break them down into smaller units. For example, if you are a theme developer it can be hard to price pre-built themes. That’s because you are not identifiable as a web designer or developer. You are just a “theme seller” Selling themes to clients who only know the cost of hiring a web developer. To make it easier you can set a price for each skill applied while building the theme. I.e.
Design/theme $10
Development/framework $15
Additional features $5
Total $30
This method is very efficient in situations where clients wants to know why you price your products the way you do. In such a case you can break it down to them because you have the cost for each effort /skill/expense applied. It is also very effective while pricing similar items of different qualities. Still using the theme as example, If you just created a theme framework, then you will exclude the cost for design and additional features and sell it at $5
The same applies to fashion designers, chefs, programmers and other service providers.
2. Create bundles
Sometimes it can hard to price items per unit mostly for items that are bought in bulk, In pairs or seem inconvenient to be sold as single items I.e pens, socks, pencils, paint brushes e.t.c Selling items as bundles can also work in other products and services. Like you can sell Phones together with all their accessories at a single price instead of pricing each items. It not only makes them appear cheap to clients but also makes the work easier for both sides. If you own a barber shop offerings different services like hair cuts, head massages and maybe waxing. You can sell all the services in one price.
3. Use deposits
A client might feel that your services are too expensive. So you might want to maintain the price without losing the client. One way to help you do that is by taking deposits then taking the lest as installments.
4. Give free trials
When selling to new clients, there can be trust issues. A customer who is not sure whether the product they are buying is worth the price or not, will be reluctant when paying for it. A free trial can help. It will give your client time to test your product/service build trust and eventually the confidence to buy the product.
5. Offer gifts and rewards
There is a lot of psychology connected to pricing, payments and purchases as a whole. A reward or offer attached to an item being sold can help clear the doubt that the price is fair.
Give money back guarantees
It is not a way of pricing products but you can count it as a bonus tip. Also this one should be accompanied with conditions.
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