For many new businesses, establishing the right price can be difficult. If what you sell is new to the market, so there aren’t lots of competitive prices to guide you, it may not be clear how much customers will be willing to pay. You want your price to be low enough that customers won’t be turned off, but high enough that you can be profitable for the long haul.
How do you decide what the right price is?
Thankfully, there are lots of online resources to guide you. Here are some to consider:
- 10 Questions to Ask When Pricing Your Product by Lisa Girard covers all the basics of the pricing issue.
- Adapt or Die by Tammy Bleck, a SCORE mentor, provides tips on adding value rather than cutting your price.
- How to Make Sure Your Prices are Right by Melissa McGraw is geared toward the fashion industry, but provides good advice on the balance between just marking up your costs and using price as a signal of value.
- How to Price Your New Product Right by David Neagle, author of The Millions Within, discusses pricing strategy, including dealing with discounting.
- Why Pricing Should be Your First Focus, Not Your Last by Stephan Aarstol, founder of Tower Paddle Boards, argues that pricing is a hugely important strategic element --too important not to think about in your startup’s early days.
- And in case you missed it, my post last week, Finding the Right Price for Your Product, reviewed the top three questions about pricing I receive regularly from startup owners.