Your Pricing Should Define Your Strategy

Pricing your product or service could be an area you haven’t put enough thought into.

It’s easy to say that “your pricing is competitive” and duke it out with the other companies around your range. But you leave so much up to chance this way.

Your pricing is a vehicle and your strategy is a road. Without a strategy, it’s going to be a bumpy ride.

There are three ways areas where you should consider your pricing should be. Each has a different strategy.

The highest price, the lowest price, and in the middle.

It can be a battlegrounds no matter where you put your price. You need to be unique or highly effective to stand out.

The Competitive Pricing

This is where the most fists are thrown. Where the biggest blows come from.

Most companies in your industry are around this range. Everyone is fighting for their share. This is where luck instead of skill can dictate sales.

People might see your competitor's ad before yours. Maybe they talked to the person who answers the phones at your business and likes them more than you.

You need to take as much chance out of the equation as possible.

Every company in the middle of your industry is offering the same thing. This can’t be you. You need to be unique.

Your product or service needs to go above and beyond. It needs to address a pain point that your competitors aren’t. Then you need to cater your services around this or make this a major selling point of your product.

If your company does this well and you stay affordable, eventually word of mouth can carry your sales. People will trust the fact at the very least that pain of theirs will be addressed.

Most companies are standard, copy-paste versions of their competitors. 

But not you. You are different because you took the time to learn what your customers want and you delivered.

Highest Price

When you’re the most expensive on the market, people will expect your product to be the magic formula for happiness.

You need to deliver on that.

Your product or service needs to address every pain point possible. It must take care of every one of your customer needs surrounding it. So many people will pay whatever price they have to if they see enough value in it.

That is why you only go for high-ticket clients. The ones who can afford what you offer. 

People who are high income care more about value than price.

If your product or service offers the most value possible, people will buy it.

Lowest Price

On this end, your value is your price. Addressing every pain point here isn’t possible.

Your major pain point that you’re resolving is the same as every one of your competitors. But you’re the cheapest.

If you can focus on multiple pain points while being the cheapest, your company will have major potential. This might not be possible for you but you should exhaust your options before giving up on that idea.

The major point of focus for you should be volume. If you’re the lowest price and you know it, you can undercut so much of the competition.

The price of a product or service is the biggest factor people consider when making a purchase. That might be obvious but I hope it serves as a good reminder reading it.

You or someone on your team should focus daily on reaching out to as many people as possible.

Mix up your methods as well. Find the outreach method your potential customers like the most. Focus your effort on that.

Volume is key for all sales and affordability is so important that people who may normally never be a customer may say yes to you. Getting it in anyone’s and everyone’s face who could be a client is a fantastic approach.

In conclusion be unique. If you similarly prices to your competitors, focus on a pain point they don’t. If you’re the highest price focus on all pain points. If you’re the lowest price, volume is king.

Your friendly reminder that pricing and strategy is like peanut butter and jelly,

Casey Puckett