24 March 2006

Pricing

A lot of people get excited about pricing and a significant amount of effort goes into making justifications for the price that should be charged for products and services. In the final analysis, it is your customers and prospects who decide the price by telling you loudly and clearly that they think the price is acceptable or too expensive.

So how is it easy for a customer to know whether or not your price is realistic and so hard for you? Simple, your customer simply asks himself whether or not the product or the service is offering good value. If you put yourself in your customer's situation and you try to think through the costs he is incurring without using your product or service then you begin to see the value your product or service offers and that will lead you to a fair price.

Whether you can be profitable at that price is an entirely different question!

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