In order to make money and scale your business, you need to have a profit margin. Many people approach pricing from the wrong angle, focusing more on what they want to make and what makes sense with industry standards, rather than what their audience actually needs, wants and finds value with.
You can’t throw out numbers willy nilly and expect to make millions of dollars. By intentionally pricing your products and offers, you gain control over that profit margin and start behaving more like the CEO- or maybe more appropriately, the CFO of your business.
Pricing can be simple, but there is definitely a strategic approach. We know that without sitting down with you one-on-one it can be hard to guide you through pricing your individual products and offers. But you can know what to consider as you look at your business, and some clarity on how others are pricing might be just what you need to grow.
Pay attention to the competition. This isn’t to say that you can’t set your prices at whatever you want. But having awareness of industry norms will help you serve your people at the proper level.
Consider the value. What are people getting? Are you giving them the key to the secrets of the universe? If so, can you send it to us? Are you selling leather goods at faux leather prices? If you’re offering the world or a diamond on a silver platter, please don’t give it to people for $7. Think through the elements of what you are selling and how they are going to better the lives of your customer. Sell them on the value THEY will get rather unsell yourself just to earn a quick buck.
Look at your margins. You can't make money if you are losing profits each time you make a sale. Being strategic about the way you price your products is the way to grow wealth in your business. Know how much your product or service costs before you price to sell. But that's just the beginning. Make sure you include any other expenses like paid advertising, software services and your time.