Financial Data
Updated 21 Sep 2020


Developing a pricing strategy

You need to get the balance right when determining how much you're going to charge for your product or service.


Work out what to charge for your product or service

  1. Research similar products or services in your industry.
    Knowing what other people charge helps to identify if you are pricing your product too low or too high.
  2. Consider introductory, or launch specials to gain interest in your business.
    A well-executed introductory offer incites customers to share the information with other people
  3. Make sure that your rates cover all your overheads.
    It is important to make sure that you won’t be operating at a loss.
  4. Consider rewarding frequent customers, in order to build anchor clientele.
    Referral rewards are an excellent way to incentivise your existing customer base.
  5. Prepare yourself for requests of bulk, or cash discounts.
    Make sure that you have addressed standard discount requests in your costing.
  6. Re-evaluate your rates and prices regularly.

There are many factors that can affect how your product sells.

 

It’s often difficult for business owners to know how much to charge for their product or service. Charging too much or too little can be equally disastrous.

 

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