Increase Sales Blog

Posts Tagged ‘pricing strategy’

With so many small businesses in the market place, determine the price of your products or services respective to the value they bring is difficult.  Under price and you may be operating at a loss. Over price and you may not increase sales and herein lies the selling yourself dilemma.

Ford’s recent new pricing strategy of having the hybrid Lincoln MKZ at the same price of the standard MKZ is an interesting approach to bridge this challenge. With hybrid vehicles generally costing more than their non-hybrid counterparts, Ford has taken an innovative approach specific to this luxury sedan.

Pricing if you sell services however is a bit more dicey. A great post at Training Zone actually provides a great explanation behind the decision making process as how to construct your pricing  strategy.  The author also included a doable formula.

One great point by this author, Verity Gough, is if you set your fees to low you may not be viewed as being credible. This is why being able to determine return on investment from past solutions delivered is necessary.

What it appears is that business people must know, understand and then articulate value to their potential customers. Yet, from my observations very few can accomplish this feat.

P.S. Read today’s business column on that critical customer experience and how it develops customer loyalty.