3 Reasons Pricing is the Big Moment in Your Business

A lot of people are confused about pricing.

I get it. Pricing is difficult. There is a ton of bad advice out there.

Most people make their pricing decisions with little consideration for what the pricing decision says about them.

The simple formula is price = value. But let’s go further and look at 3 ways that pricing is the most valuable moment in your brand’s journey.

The price decision is where you get paid: Your marketing has been building value throughout the marketing journey. Setting your price is where you capture some of the value that you’ve been building up through the process.

Your price establishes an important message about your brand: When you set your price, you establish what kind of brand you want to be:

• Inclusive or Exclusive?
• Premium or Commodity?
• Cheap or Luxurious?

Your brand. Your call. Make sure it the call you want to make.

Your price sets the stage for future business: Price is always about perception and perceived value. Setting your price sets the stage for this to be a one-time purchase or an ongoing relationship. If you price too low, you are seen as a commodity, replaceable, even if you aren’t. If you price too high, you might scare off your market. If you don’t price correctly, you leave profit on the table.

What price are you going to set? Or, do you have another philosophy?