Product Creation Lesson #12 – Setting Prices with a Competitive Pricing Strategy

Setting Prices with a Competitive Pricing Strategy

Determining the right price for your irresistible product or service is a crucial decision. Here are some key factors to consider:

Understanding Your Market

  1. Know Your Audience: Ensure that your pricing aligns with what your target market is willing to pay. If your price is too high, you risk losing potential customers; too low, you may not cover your costs.
  2. Profitability: The price you set should allow your business to make a profit. If it doesn’t, you won’t be able to sustain your operations for long.

Analyzing Competitors

If your competitors are charging $37 for a 100-page eBook, it’s wise to price yours similarly—at least within the same range. Conduct thorough research to understand the competitive landscape and see what others are offering.

Competitive pricing is particularly common in markets where products are hard to differentiate. However, if you can demonstrate that your product provides significantly more value than others, feel free to charge accordingly.

Market Leaders and Pricing Standards

In any market, established leaders often set the pricing trends that others follow. If you choose not to align with their prices, you may find yourself struggling to attract customers. This is where your differentiation strategy becomes essential. If you genuinely offer a superior product, you have the opportunity to set a new pricing standard. Just make sure you can justify the higher price point.

Justifying Your Price

To defend a higher price compared to competitors, be prepared to highlight what sets you apart. This could include exceptional customer service or a stronger guarantee than what others provide.

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To Your Success,

A.BERRICHI

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