There are different ways of setting a price. But understanding what to charge is a slightly different proposition. Finding what to charge can be incredibly hard. Getting it wrong have a huge effect on your business. Let say you have a ₹10 cost for your product so you sell it for ₹11. That is a 10% profit. But what about if customers were willing to pay ₹12, suddenly you are doubling your profit. A price difference that may mean nothing to your customer is a 100% increase in your profitability. It also works in reverse. If everyone thinks a lawn mowing service costs ₹49, you will get no customers at ₹55. That small difference can put you into a different market in the mind of your target audience. Suddenly you are competing against businesses you didnt expect to compete against. At ₹55 customers may be expecting to be getting a gardening service, not just lawn mowing. Look at the ceiling for your market. What do your customers see as the maximum they would pay for your service? Is there a magical glass ceiling that your customers know but you don’t? #glassceiling #blindspots
Posted on: Thu, 16 Jan 2014 07:06:11 +0000
Trending Topics
Recently Viewed Topics
© 2015