In part 1 of pricing strategies, we talked all about numbers and how important it is to know your numbers before you price your products or services. In part 2, we’re going to discuss how to determine your value. Now, before I begin, I’d like to mention how subjective value can be in pricing and ultimately it will come down to what works best for you and the quality of product or service you’re offering. So let’s dive into part 2 of Pricing Strategies: determing your value.
Quality matters and you and I both know, you end up paying for it. Now when you are determining your pricing and your value, you have to take into account the overall quality of your product or service. If you know that you are doing the best work out there, your prices should be higher. If you’re using locally sourced material for your products, chances are your quality will also be higher. Also, consider your overall experience. Are you creating the most seamless experience for your client? Is your customer getting more than just the product?
2 | Ideal Customer
When you’ve identified who your ideal customer is, you have to cater to who they are and what they see value in and also what they can afford. Now, keep in mind that your ideal customer may not be able to afford your highest cost offering, but that doesn’t mean they won’t be able to down the line. Your ideal customer may be at different parts in their life, however bringing value to them doesn’t just mean your priciest offer. Other ways of bringing value can be through a free blog, opt-in’s or lower tiered price points.
3 | Unseen value
Not all value comes from what you’re ‘physically’ being given, you have to determine your unseen value as well. This can come in forms of less stress, more time, more money down the line, easier workflow, increased confidence, better mood, etc. Consider what else you’re providing your customer that maybe isn’t being seen upfront.
4 | Expertise + Social Proof
This does go a bit back to the overall quality, however value does come from expertise and your social proof. Do you have great testimonials and a portfolio that shows off amazing work? Do you have 5 star reviews for every product? Do you have years of experience doing the work you’re offering? If so, it’ll be easier for potential customers to want to buy from you. All of these can add value to your offerings.
5 | Demand
Finally consider the demand for your offering. Are you booked out for months or sold out in minutes? You can see that people recognize the value of your offering and are willing to pay for it. Take the time to consider whether or not adjusting the price can be good.
Now it’s your turn! What has helped you the most in determining your value?