Setting your pricing strategy (infographic)

As a small business owner, it can be difficult to know how much your customers value your products or services. You don’t want to lose customers by overpricing, and you don’t want to lose out on revenue by undervaluing what you provide. This confusion can be greatly alleviated by conducting solid market research. This includes understanding your customer and how savvy they are financially. In addition, it’s essential to thoroughly examine the competition in terms of value proposition and price point.

After you’ve raised enough money to build your business, it is important to ensure these investments can be turned into a steady cash flow. While pricing your products appropriately will help keep your business afloat, this isn’t the only effect of your prices. How you set your prices will have an impact on your market share, branding, and customer loyalty. While pricing low may undercut competition for a time, the customers gained during your bargain phase may not stick around once you’re pricing more sustainably. If you price your product too high, you’ll need to make sure you’re branding conveys your premium value.

Do your research well, and you’re sure to find a pricing strategy that helps your business grow over the long term. For help on which strategy is right your audience and market, check out this infographic below by Fundera:

Leave a Reply

The Self-Employment Survival Guide can help you succeed. Learn all about it here.

Self-Employment Survival Guide book cover