Your pricing strategy defines the fate of your business. You can ensure profits and longevity by paying serious attention to the pricing strategies for your business. Commonly, small business owners keep their prices low in comparison with their competitors, to attain profits.
But a strong competitor may lower the price with more qualities to win the match, which may destroy your business in seconds. Here are some pricing strategies that may help you in setting your own pricing strategy for your small business, and may help you to stay long in the competitive market with pocket full of profits.
Top Tips for pricing strategies for small businesses
1 Set price equivalent to value and quality .While fixing a price for a product, small business owner should know the market statistics. Price your product equivalent to expenditure, value and quality, keeping in mind the quality and value of the same product of your competitor in the market.
2 Price your products with features an d benefits in mind. Look into the market, compare your product with the product of your competitor, and calculate the benefits and features you and your competitor are offering and then decide to increase or decrease the price of your product.
3 Set quantity suggesting prices . Many consumers respond to quantity suggesting prices, such as “$5 for 5 grilled sandwiches”. These kinds of sale or offers are quantity suggestive that attracts customers and brings them to buy five instead of one.
4 Get your customers to love your product. Get your customers to love your product so much that they wont be able to do without it and then higher the price in good time.This is the most familiar pricing strategy. When you feel that you have regular customers and the satisfaction level for your product if going great, then raise the price of your product. This strategy never fails.
5 Price as per convenience If you know that your product is better that others’, easy to use, and wi
th an upgraded level in comparison to others, then higher the price of your product and enjoy your profits. It’s easy to pull out money from the customer’s pockets if they are happy with your product.
6 Price with a bundle Last but not the least package your product with some other relative products and then price the package. This strategy may attract more and more customers and it’s sure that your idea would be copied by your competitors.
Now you know the key to success pricing strategies for your small business. So practice these pricing strategies to make your small business successful. Most of all establish your own policies, redesign your prices according to the people for whom your product is targeted at and earn massive profits! Best of luck!