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Pricing Strategies – How to Charge More for Your Products

Offering the lowest price is not always the best marketing strategy. First, it cuts into your profits. If you continually provide lower prices than your competitors, the increased sales you receive could be worthless because you're still earning less revenue. 
 
Second, consider that a company may undercut you. Large companies have a considerable advantage when it comes to undercutting. They can afford to take a slight loss if it means long-term gains. You can't.
 
Instead, you should charge well for your products. There are several ways you can set your prices higher and still make sales.
 

Perceived Value

Setting a price relies more on perceived value rather than actual costs.  Perceived value is what your customers expect to pay for your products. Grasping this concept makes selecting a higher price much easier. 
 
For example, in the 1990s, a new CD sold for $14.00. Never mind that it's a plastic disc with data imprinted on it whose actual material and production costs were a couple of dollars. People expected to pay $14.00, so record companies could charge it.
 
Using perceived value to your advantage means understanding what your market perceives as valuable. In other words, which product qualities warrant higher prices in your customers' eyes.
 

 

Emphasize Uniqueness

Decide what makes your product unique. Does this help or provide value to your customers in a way your competitors' products do not? Your product doesn’t have to be the best at what it does, rather the only product that uniquely meets its buyers' needs.
 

Customize and Personalize

Customization can set you apart from big companies. People will generally pay more for a product that meets their individualized needs. If you discover a way to customize your products or emphasize this customization as a key benefit, you can set prices higher.
 

Aim Higher

Maybe you're targeting the wrong market. There is always a segment of the population that will pay a great deal for a high-quality product. If you can sell to this segment, you'll have no problem setting your prices high. This strategy requires convincing this particular audience that your product is in fact, high-quality. Identify this higher-paying market and conduct adequate research to learn what companies they buy from and why.
 
Leaning on low prices as a sales tactic could hurt your business. Examine your products and services and highlight the uniqueness that warrants higher prices. 
 
ProSavvy Strategy Sessions help determine marketing elements such as pricing. Let's chat and see how ProSavvy can help your business grow. Schedule a free discovery call at ProSavvyas.com.
 

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