10 Tips on How to Price Your Product or Service
1. Always mark up the price at least 100% more than what you paid for it. Your company needs to make a profit so always make sure mark up the price at a minimum of 100% more than what you paid for it. You can even mark up the price to 300% more than what you paid for it sometimes.
2. See what your other competitors prices are for each product or service that is similar to your company. You can see how much they charge to get a general idea of what price customers are usually paying for each product. You want to have your price range for each product or service somewhere in between the price range of other competitors unless your product or service is much better than others.
3. Is your company product or service better than the other competitors? If the products are better than the others then make sure to mark up the price. You need to be able to back up your prices with reasons as to why your products are better. You need to give them reasons how your products or service will benefit them more than the competitor.
4. Is there any additional products or services that your company can offer ? You have an advantage over other competitors if they don’t currently offer an additional product or service. There is another way that you can make more profit for your company by having even more products or service.
5. Make sure to check out which weekends that your competitor has sales or special deals. You need to make sure that your company offers the same type of sales or special deals in regards to products and services that are similar. You want the customers to buy a service or product from your company instead of your competitor.
6. You want to become better than your competitor in regards to being able to provide excellent customer service along with services and products offered. It will help you get more profits if you become the best company in the local area no matter what the product or service may be.
7. Don’t be worried about your prices being too high for certain product or service. Customers are willing to pay a higher price for a better product or service with the best company in town than they would with your competitors. Customers want to know that they are going to receive the best service or product by going with your company instead of the competitor. It is a situation where everyone wins since your company will make more of a profit long term and the customer is happy.
8. It is important that your customers are happy. If your customers are happy with your company then they won’t mind paying a little higher prices since they already like your company. You will often get repeat customers and even more future customers from word of mouth. When your customers are happy with your company products or service including customer service then in return you will get repeat customers and even more future customers.
9. Always make sure to be aware of any new companies that may open up in the local area of town. Some companies send their employees over to the competitors store to look at the prices and any other offers that a certain company may have. Be alert about any new competitors and watch out for any of their employees. Sometimes they pretend to be a customer. This is important to remember when dealing with prices.
10. The number one top thing to remember in prices along with products and service is to always be better than your competitor in every way possible. You want to provide the best customer service, the best products, and the best service available in town. You want your company to always have happy customers and have an excellent reputation.
