Comments on: Deciding price based on the customer http://www.energybyte.com/blog/deciding-price-based-on-the-customer Doing Business, Start-ups, Small Business Blog Fri, 02 Dec 2011 06:12:19 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Tinu http://www.energybyte.com/blog/deciding-price-based-on-the-customer/comment-page-1#comment-16900 Tinu Mon, 08 Sep 2008 22:15:04 +0000 http://www.energybyte.com/blog/?p=289#comment-16900 There's two ways I normally decide. I create a list first, then ask the list what they want and how much they'd page - almost ALWAYS higher than I think to offer. The second way is to start with a low price and incrementally increase the price periodically until sales start to slow. Your post brought up great points - I also try and remember that pricing that is too low often brings me the wrong type of client - a price shopper rather than someone happy with true quality. There’s two ways I normally decide. I create a list first, then ask the list what they want and how much they’d page – almost ALWAYS higher than I think to offer.

The second way is to start with a low price and incrementally increase the price periodically until sales start to slow.

Your post brought up great points – I also try and remember that pricing that is too low often brings me the wrong type of client – a price shopper rather than someone happy with true quality.

]]> By: Bob MacDonald http://www.energybyte.com/blog/deciding-price-based-on-the-customer/comment-page-1#comment-16283 Bob MacDonald Thu, 04 Sep 2008 19:04:39 +0000 http://www.energybyte.com/blog/?p=289#comment-16283 Well made points in the blog. I have a basic philosophy for an entrepreneur -- any company really -- that if your success is based on pricing, you will ultimately lose. Using a comodity approach -- even for a service business -- leads to failure, because there is always someone crazy enough to offer a lower price. After over 25 years of experience I have learned it is much better to offer your service or product based on value not price. My experience is that people will almost always buy value over price. If they don't, then they will not be customers you want. Well made points in the blog. I have a basic philosophy for an entrepreneur — any company really — that if your success is based on pricing, you will ultimately lose. Using a comodity approach — even for a service business — leads to failure, because there is always someone crazy enough to offer a lower price.
After over 25 years of experience I have learned it is much better to offer your service or product based on value not price.
My experience is that people will almost always buy value over price. If they don’t, then they will not be customers you want.

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