Developing a pricing strategy perplexes many women and mom entrepreneurs. When it comes to pricing and value, we expect to pay more based 0n perceived value, product placement and packaging online or offline.
When it comes to the Pricing Matrix, there are four basic components to consider.
- Costs. Focus on your current and future, costs to create, deliver, and distribute your product or service.
- Price Sensitivity. Understanding the demand of your product or service. If your target is women, you must understand what emotions make them buy, what state of mind they are in when it comes to making a final purchase.
- Product Life. How you price and the value you provide for that price, will change as you move through the product life cycle.
- Product Creation. The only way to determine accurately how much money you can afford to spend on development, marketing, a team, and promotion is to analyze how much of that product or service you will sell, to whom and at what price.
I learned to price my services based on my cost for creation, deliverables, my time, and market share, not what I need in order to survive month to month.
Remember: Provide your customers with what THEY want. I was providing value on my terms. I had to remove myself out of the pricing matrix to provide real value. I had to learn to understand that I am not MY CLIENT.
- Who is your customer?
- Who are you creating the product for?
- Why are you providing the service?
My clients wanted the following:
- True Benefit
What do your customers really want from you? How can you adjust your pricing matrix to see a return and results?
Check out this article for more pricing strategies.