How Much!?! The Importance of getting your pricing right.
Pricing (perhaps marketing’s most overlooked P) is frequently not given the attention it deserves. Perhaps you take a look at your competitors and think “hmm, well if we charge a little less / a little more than them then …”, or “it costs this much to produce so let’s stick 10% on top.”
Of course, the only way you should look at pricing is from your customers’ point of view. They don’t care how much it costs you to produce what you’re selling.
Here are two things to consider when thinking about your pricing.
1 ) Options: if there are lots of alternatives to what you are offering (think petrol) then price will often be used to decide. If however, you’re selling something that is considered ‘different’ or even unique then price becomes less important.
That’s why getting your story right and understood is so important. If your customers care about how you’re different or rare, you instantly become more valuable to them.
2) Pictures: often pricing is used to distinguish one product from another (think cars), the ‘if it’s more expensive it must be better’ mentality. Here price paints a picture of quality in our minds. If you price it low you’re painting a picture of economy / value, set it high you get one of luxury. Set it in the middle and you paint no picture at all and price ceases to be the determining selection factor.
What picture are you trying to paint?
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May 4, 2024
Written by : Mark Rowland
Mark's been working in and interested in all things marketing since 2010.
