Price is a way to position your product or company in the market and even to increase (or decrease) the perceived value of what we sell.
We must keep in mind various variables (costs, competition, demand, etc.) related to prices that will influence our profit.
Whether we are about to start a new business or are already operating in one, we often question whether or not we are setting the optimal price .
The price decision must be made based on different life insurance email list variables such as production costs, sales volumes, competition or even the type of public to which we are directing the good or service. However, this goes unnoticed by many of us.
Many of the problems that exist in SMEs come from the fact that, sometimes, the price setting is done by the mere intuition of the entrepreneur , and not by a study procedure. Consequences? Losses simply by choosing the wrong price. However, we give you the keys to setting your prices without problems.
How the customer decides whether the price convinces him or not
Pricing is a decision that we, as a company, must make based on many points. But there are some concerns that, at first glance, most business owners have:
Will it seem expensive or cheap to my client ?
Is it a price that leads to buying or ignoring the offer?
How does the customer's mind work when it comes to prices?
One of the things that customers value is credibility . We cannot expect, for example, to sell a medicine that cures all ills for just 5 euros. At that price, they will think that there is surely something fishy going on.
Regardless of what is behind the product or service, the price adds or subtracts value to what we offer . In other words, let's imagine that we sell a bottle of water for 30 euros. The customer will automatically perceive that the 30 euro water will be much better than the 2 euro one.
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We must also take into account that the client will compare everything within his reach. He will probably consider three options: a cheap one, an intermediate one and a more expensive one. So, we must ask ourselves: which one do we want to position ourselves in?
The reputation of the brand or store in question is also something that the customer values. If the store or brand is usually positioned as one with low prices, any price will be perceived as low even before comparing. However, in a store positioned as having higher quality or higher prices, they will automatically be perceived as higher.
However, customers tend to choose the middle ground . In other words, we all want to avoid being cheated, so we tend not to choose the most expensive or the cheapest, but the middle ground. However, it is true that in the end it depends on how you value or see it yourself.