Hallidays’ 7-step guide to pricing looks at how to price and position your products and services for maximum profit. This blog focuses on one of these steps – adding more value.
Most people think that customers buy based on price. They don’t! Most customers buy based on value. So a key step to maximising your profits is to add more value into your products and services.
For example, the price of coffee in a coffee shop is considerably more than in a fast-food outlet because their customers value the benefits associated with the experience of visiting a coffee shop.
There are only three reasons why people might object to your pricing:
- They can’t afford you – in which case they are not your ideal customers
- There isn’t enough value
- You haven’t communicated the value
Take action
A great way to get started is to bring your team together in a relaxed environment to brainstorm the existing and potential benefits of your products or services to your customers. Remember to include any feedback you’ve received from customers. If possible, include an outsider who knows your business well, as a ‘fresh pair of eyes’ can help you identify the things you take for granted and may even suggest new ideas. What action are you going to take to add more value?
If you would like to learn more about how Hallidays can support you to formulate a pricing strategy that maximises your profits, please contact our team on 0161 476 8276 or [email protected].