There are many factors that inform how you price your products and services. Where should you even start?
ATB breaks down pricing strategy basics so your small business can come out ahead.
Why pricing is important
It might take some trial and error, but implementing your pricing strategy is crucial because you can’t make money without one. We explore how your costs, competitors, customers’ preferences, and goals inform your strategy and can set your business apart.
Evaluating your strategy
How can you figure out what’s working and what’s not? For starters, you can monitor your finances, but there are other data pieces you can analyze to price products to your advantage.
When your pricing strategy is broken
What are customers saying about your business? What are competitors doing to your business? If your method isn’t working, it’s time to fix it. We break down some key indicators that your pricing strategy is no longer effective.
A customer’s willingness to pay
You can glean insights from your customers if you know what to ask. Here are questions you can pose to learn how much they are willing to spend at your business. Hint: it’s based on value perception.
