‘5 Tips for Setting Your Optimum Price’ – ‘Entrepreneur’ Blog
Doug & Polly White say, “Pricing products or services is one of the most important decisions entrepreneurs make for their businesses. And, unfortunately, getting this right can be tricky. But paying attention to the five items below will help you to navigate these treacherous waters more smoothly.
1. Perceived value of your offering
What does your customer base perceive to be the value of your offering? This will establish the maximum price you can charge because a rational person will not pay more for something than the value he or she perceives.
Remember that it’s perceived value that matters, not actual value. If the actual value of your offering exceeds perceived value, you may be able to change perception with a well-crafted marketing communication program. However, until the perception is changed, that factor will cap what you can charge“.
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