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KMS Publishing, October 2012
If you are trying to sell something on the Internet, pricing your services/ products would be one of the most important decisions you will undertake. The pricing of your products or services will play a huge determining role on how long you can survive in the market.
One key thing to keep in mind is that the Internet provides thousands of alternatives to the customers. Therefore, in order to appeal to customers your pricing needs to be at par with, or even be a better bargain than, the competition.
Setting a price for your product or service is not as simple as randomly picking a good number you feel lucky about and then setting it as that. You will need to look at making a profit and then mark your price more than your cost but lower than the price your customers expect to pay for your service.
There are elaborate pricing plans that you should understand and be able to work with. What pricing plan you want to work with would depend on your business model.
You need to acquire a clear cut idea about your market demand and competition. You have to pinpoint a consumer group to begin with and then estimate how much they would be willing to pay for your services or products. To what extent can you push it? How often do you need to review the prices?
This book will give you the fundamentals on the following:
· Pricing strategies that improve profit
· Price skimming as a pricing strategy
· Psychological pricing
· Market penetration pricing
· Promotional pricing
· Competitive pricing
· Value based pricing
· Offering discounts as part of your pricing strategy
· Alternative pricing strategies
Plus more marketing tips and strategies to help you set the winning price!
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