Question :
How do I know if I’m selling at the right price?

Question submitted 18/06/20 @ 10:32am
Industry: Sales
  • Great question, a few ways you can work this out. At one extreme, are you selling as many as you can make/produce? Are no customers trying to negotiate a reduction and/or are you selling none? You could talk to your customers, and do some interviews with them to find out their preferences and their thoughts on pricing – just need to be careful how you ask the questions to get the insights. Also, can you compare your pricing to competitors or alternative products? Andy

    Hi, this is a big one. The 2 best sources are competitors, though you don’t want to compete on price, as that’s a “race to the bottom” death spiral which favours large, established companies.

    The other one is to focus on value, not price.

    What will customers pay for you to solve their problem, and in what manner? One-off, subscription, PAYG etc.

    The only good source of that data of actual or potential customers, so getting front of 10-15 will give you a great idea of what will work in the market. You can do a survey but even a few 1:1’s always helps refine your questions as well as giving good data.

    Good luck!

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