3 ways to create a more profitable pricing strategy
Pricing continues to be a hot topic on every business owner’s mind. You don’t want to deter business by charging too much, but at the same time, you don’t want to sell yourself short. We’re all after that happy medium, where clients stay loyal and you turn a decent profit.
You pricing strategy plays a big part in deciding your profitability, so let’s get down to business.
Here are three things you need to do before revisiting your pricing strategy:
1. Scope out your competition
How much are your peers charging for similar services? How’s that going for them? Do you even have any competition in your area? These are all factors to consider. Sure, I could throw out averages, but every area is unique. You have to get a pulse on your market.
Identify and visit your top 5 competitors’ websites to see where their ballpark pricing lands. Then compare what they offer to what you offer. And if you’re losing clients to one of those competitors that’s charging more than you do, ask former clients why they left. You may be overlooking an opportunity to grow profitability.
2. Revamp your pricing model
If you’re stuck in the world of break/fix, consider moving to an As-a-Service model. If you sell on price, not value, re-think your pricing strategy. Peace of mind is priceless.
3. Evolve your offerings
While there will always be staples that customers need, new technologies and needs continue to emerge. By evolving with them, you can continue to capture more of their business and a tidy profit for yourself.
Hint: This is one area where it’s a good idea to survey your customers. Their insights can help you decide which solutions to invest in next.