Pricing Strategies That Actually Work

Premium Pricing

Use premium pricing when you want to target high-paying clients or if you want to prove that you produce high-value products. Price your products or services at a higher price than the competition. A lot of people judge your product or service based on your pricing. The higher the price the more valuable they perceive it to be. So, create unique products or offer unique services that are worth the price.

Provide value to your customers and give them their money’s worth. Give them a reason to choose your business over the competition, and paying a higher price. You want to be known for the value you offer as well as the flexibility and convenience you bring your clients. So, come up with an effective plan that will ensure you render the best service and keep your customers happy and willing to spend an extra buck.

Use value-based pricing to grow sales and understand your customers better. Set charges based on what your clients are willing to pay. Do some market research. Find out how valuable people think your product is. For example, do they find it beneficial? How important do they perceive it to be? And Does your product offer practical solutions to their problems? Is that how they see it?

Know and understand your target audience, their needs, pain points, and challenges. This will help you to provide a solution that works and prove that your offer is both useful and worth every cent.

Improve ROI and avoid profit loss by incorporating cost-plus pricing into your strategy. Consider production costs and how much profit you want to make from a certain product and set your price right. You can aim for a 100 percent profit or less. It depends on your value proposition, customers, and so forth. The main goal is to ensure a turnover.

Include geographical pricing when you offer international services. Offer similar services to different people at different prices based on their location, income, cost of living, shipping costs, taxes, etc. Consider market demand and transaction fees as well. Add value-based pricing into the mix when targeting high-paying clients.

Take it a step further and encourage spending with bundle pricing. Offer a wide range of complementary services to attract more customers and provide more value. Bundle related services and set a lower price or provide extra value at an industry-specific price. For example, add free shipping or offer free maintenance services for a month or two. You want your clients to receive multiple benefits from one package deal. This will keep them happy and encourage them to continue purchasing from your business.

The best way to ensure results from your strategy is to mix different pricing types. This is because certain pricing types work well when coupled together. Therefore, you can use promotional pricing with freemium pricing or premium pricing with value-based pricing, and so on.

Experiment with different methods and identify what works best for each product or service. You may find that what worked for your previous product won’t work for the new one. So, use different methods.

When you are comfortable with your pricing strategy move on to the next step.