3 Tips for Setting a Price for Your Product or Service

Trying to set a price for a product can be awkward if you don’t really know where your product fits within the market. Before you can justify a price tag, you need to understand your product completely. Given below are three simple tips to help you price your products better.

Market the product as exclusive so you can capitalize on upper class or high end sales. People are willing to pay more if they believe it puts them in a more exclusive group. People that belong to this elite crowd won’t mind paying a higher price just to remain exclusive. One option to consider is offering a full featured product at a higher price point and a “lite” version that offers fewer features and/or services. This option offers the emotional fulfillment of getting a little bit more to those who have the “elite” mindset. People in your target market will find this particular psychological trigger hard to resist. This is a tactic that doesn’t suit all products on the market but it is very applicable to many of them. Be alert for new products being released within your niche. There will always be marketers on the search for new niches to exploit. You have to keep an out for anyone that’s launching out a product because you obviously don’t want their price to affect your sales. It’s easy to do this with a simply Google Alert or even by subscribing to your competitor’s newsletter or blog to help keep you up to date on their offers. Competition is a good thing in any industry, but don’t let them stop you from improving your own offers.

Last but not the least; keep an eye on the competition and find what kind of special deals/discounts they are having and on which days. This gives you a chance to tweak your own offer to make sure yours is a better deal. If you watch what your competitors are doing with their strategy you have a clearer idea what you need to do to continue standing out from the crowd.

You should be learning from their strategy and then using the information to enhance your own marketing efforts. If you ignore this simple tip, you risk giving your competitors the edge over you, so stay ahead of them whenever possible and offer better value. Now you can see why setting the right price is so important for your product. Changes in price are simply ineffective when it comes to boosting sales. It’s best to set the right price from the start if you want to enjoy greater overall profits.