In order to succeed in business, there’s a lot you have to get just right. Your idea, the market, and timing all come into play. There’s also a factor that many small business owners and entrepreneurs forget about until the very end: how to price their product or service. While deceptively easy, setting the right pricing strategy has the power to elevate your business into new markets, amplify your brand, and mitigate competition. Choosing the right pricing strategy may take some time, but requires three main elements.
First you must know your audience, the market, and your business. Understanding these three elements sets a solid foundation to select a pricing strategy that helps take your business to a new level. To get a full sense of your market, conduct thorough research. You should understand what your audience values most in products or services like yours, and what they will be comparing your product to. Being able to offer more value that is actually meaningful to your audience is essential to driving sales and a successful business. Finally, keeping an eye on your own costs and profit will help you maintain a healthy cash flow that will make the most of the funding you raise.
From this point, you can select a pricing strategy based on whether your market is oversaturated or sparse, or whether your audience expects cut-rate prices or prestigious branding. For more help on selecting the right pricing strategy for your business, check out this infographic below by Fundera.