Our “Is Your Pricing a Hit or Miss?” seminar and workshop is coming up soon. This short video contains excerpts from a past session to give you an idea of the type of information we’ll be covering. If you don’t have time to watch the video, scroll down for a written version.
The Written Version
What we covered: With our pricing strategy session, we actually looked at different pricing strategies. We picked at least 1 to 2 to actually apply to an existing product or service. We pitched it and we got feedback as to whether we needed to adjust our price up, down, or whether it was just right and good to go.
Art and Science of Pricing: Let’s talk a little bit about the art and science of pricing. Pricing is not just mathematical formulas. There also is a little bit of psychology involved, which is the art part of it. So let’s look at some different strategies today that you can apply to your own business.
When to Decide on Pricing: Pricing is essential to the success of your business. And I think that’s pretty obvious, but we don’t realize how important pricing really is. If you read books about how to price your product or service or you look at blog posts on the web, it seems like they almost admonish or judge the entrepreneur for thinking about pricing last. They say, “What’s wrong with entrepreneurs?” because it’s almost like pricing is like an afterthought.
And I actually disagree with that. My personal opinion is pricing has to come last as a practical matter. If you’re an entrepreneur, you think about what are you going to put out into the world, what product or service are you going to put out, what are the features of it, what are all the things that go into it. You got to figure out all of that first in order to come to a price.
Charm Pricing: The first strategy is called Charm Pricing. And you see that little icon there, the Mona Lisa, because Charm Pricing is simply an art. It’s not a science. And Charm Pricing, all that means is you end your price with an odd number like a 9, a 7, or a 5.
Anchor Pricing: Another strategy that I want to introduce you to today is called Anchor Pricing. So that would be the last slot on your action pack. Anchor Pricing is where you show the regular price and then you visually lower the price so buyers think that they’re getting a deal. A really popular example here is the Walmart Rollback pricing. They use these signs to make you think you’re getting a really good deal, but you have to be very careful with this because it can be illegal.
Learn more at Pricing Hit or Miss
If you’d like to learn how to calculate the best price for your products or services, join us for Is Your Price a Hit or a Miss. Click here for information and registration.
