irrational pricing

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Are you losing money by setting prices too low or losing customers by setting prices too high?

Are you losing money by setting prices too low or losing customers by setting prices too high?

Traditional cost-plus pricing doesn’t consider the value provided to the customer.


Here’s the solution; value-based pricing.
But how?

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The traditional approach to pricing ignores the value that the product or service provides to the customer. This can lead to lost revenue and dissatisfied customers. How can you avoid the guesswork and uncertainty that comes with cost-plus pricing?

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Value-based pricing takes into account the value that the product or service provides to the customer. By understanding the customer’s needs and preferences, you can set a price that reflects the value that the customer receives from the product or service. But how?

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Step 1: Understand your customer’s needs and preferences. Market research, surveys, and customer feedback can help you tailor your product or service to meet their expectations. But what comes next?

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Step 2: Determine the value proposition of your product or service. By identifying the unique benefit that your product or service provides to the customer, you can set a price that reflects its value. But how do you analyze the competition?

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Step 3: Analyze the competition. By understanding the pricing strategies of your competitors, you can set a price that is competitive and reflects the value that your product or service provides. But how do you put it all together?

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Step 4: Set the price. Once you have completed the above steps, you can set a price that reflects the value that your product or service provides. This approach can lead to higher profits and increased customer loyalty.

You're leaving money on the table

I publish a few case studies every month. I choose a product/service in each case study. I explain how they will increase their revenues with their pricing strategies.

 

Learn to increase your revenue by designing your pricing with behavioral psychology.

It’s free.