Pricing your product or service can be tough. It can be particularly difficult if you are selling a service and essentially your time to put a price to that. For example, I've worked with numerous trade companies over the years and often they want to reposition themselves in the market and attract bigger, more profitable projects. They want to get out of the race to the bottom, where the customer is looking for the cheapest quote. So how can you justify your prices, especially if they are higher than the average in your marketplace?
Getting the right price is a combination of what your customers are prepared to pay but also their perceived value of what you're offering. You have to understand your customers and what they value, and what they'll pay more for, that is the key.
Once you have settled on your price you need to then communicate its value and justify your price. You can do that simply by explaining what value you are offering inline with their values. Often companies don't do this as they think it is obvious or they undervalue some of the elements of their service so they don't include it.
Then outline the benefits they will enjoy if they buy from you, particularly any that your competitors don't offer. Promote your expertise and experience, again this is an area many businesses don't include, yet often this is the real justification of any pricing policy. One client said to me recently that they didn't want to look like they were boasting, yet it was their decades of experience and expertise that set them apart and justified why they charge more than their competitors. So share your story, it's at the heart of how you communicate value.
