Digital Book: The Four Pillars
of Guaranteed Business Success
At What Price? (This is an edited extract of the Blog
When marketing a product or service, businesses find it difficult to
set their prices. Too high, and no-one will buy, too low, everyone will
buy, but you go broke. So how do you set your prices?
The basic principle of pricing is that you should set your prices as
high as the market will allow. But what does that mean?
This means understanding the value you offer compared with your
Is your product stronger? Does it last longer? Is it better designed?
Or is there a convenience factor? What is the value of such differences to
For example, you can get a $2 chocolate snack bar at the service
station as you are filling your car. You know you could probably get the
exact same bar for 25% less at the supermarket, but you will have to make
a special stop, and then you will have to wait in a queue. Its just not
worth the 50 cents you will save. But if the bar was $5, would you buy it?
Well you might if you knew that this service station was the only retail
store for 200 miles!
When you know what your product is truly worth, and you have educated
the buyer of its value, you will be able to set prices that reflect that
If you don't understand your value, you will forever be just another
commodity seller competing on price.
(See the full version of this article on the Blog)
All you need to do now is to Empower yourself and take
Have a great week!
Dr Greg Chapman - The Business Brain