Is your product worth
the price your asking?
Some observations on Product pricing.
Your prospective buyers don't care how many hours or dollars it cost to develop your product or services.
What they really want to know is what your product or service can do for them.What benefits will they receive if they buy your product or service?
What this means is are they willing to open their wallets and part with their money on the value they place on the benefits they will receive.
If you are still using the old methodology of calculating your costs for development and then plopping on your idea of what is a good markup to determine your pricing - then I've got some sad news for you. This just doesn't work anymore.
Once again - the buyer doesn't care about you she only cares about what the benefits will do for her.
Value based pricing when linked to the benefits has far more attraction to your buyer because she can easily understand the benefits she'll receive and you will more readily attract buyers who care more for value than cost alone.
You will find by setting up your products and services in terms of their value you also create a much more powerful brand recognition.
This will also help eliminate any competition you may have if you are competing on price alone.
Consider how you might repackage and/or bundle your products and services in a way that will bring more value for your buyers. Overdeliver! Then you can set a more realisitic price.
Examples of this are: A money back guarantee, free installation, customer service contact information, instant free delivery, a toll-free help line, free product training like maybe an online manual or free product updates.
With additional value attached like this - price becomes a non-issue.
When you attach more value this way - you have gained a loyal and appreciative buyer who will gladly come back for more of your products and services.
If you aren't using these methods maybe it's time for a change.
It has been proven time and again by successful business that not only does this increase profits by attracting buyers, you now have repeat buyers and isn't that what we all want?
Ramp it up and make the changes... you'll be glad you did.
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Product pricing is just one part of a successful business..
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