Pricing Your Services in a Competitive Market

When it comes to starting and running your own business, finding a price point for each good or service you provide can be difficult. And with competitive markets and other makers out there, it can be hard to get a good price range.

Do Market Research

Look into the average cost of what you are selling, and find the highest and lowest price points. That will give you some good ideas as to what people are willing to pay for the service, and what is comfortably within most customers’ budgets.

Prioritize Profits

This may sound like a given, but don’t undercut your skills and expertise for the market. Be sure to factor in the cost of production, labor, and taxes when creating your service. That bare minimum to break even is a great starting point for pricing. However, if you are working in bulk or one of the expenses can cover more than one service or be reused (one-time purchases included), then you can adjust that price.

Do a Survey

When you begin a marketing campaign, or if you’re still building the business, create a survey to be shared with others asking simply what they would pay for something. You’ll get real feedback, and helps spread the word about your upcoming launch!

Consider Running Sales

When it comes to pricing if you have an event that you think warrants a sale, go for it! Many businesses are doing anniversary sales, holiday sales, and more. If a customer thinks that the normal price is too high, consider informing them of any upcoming sales you might run.

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The biggest thing is simply doing a little bit of research at the ground level. At Minds Co/Work, you can get advice from real people in the market and potential customers. Don’t leave your business up to algorithms and what random internet users might say your service is worth. Plus, you can build your business with Minds Co/Work’s office space, mail service at your virtual office, and more!