BY: D. Bernard Webster / POSTED: Tuesday, October 22nd, 2013
The information shared was very helpful. I would like to know what is the best way to survey your customers via market research? Do you have any suggested tools that can be used to do the market research? Thanks for any info.
A simple 10 question survey from a site like http://www.surveymonkey.com should suffice. Its free and can be distributed via email or link which would allow you to utilize social media. Also, try holding a small focus group of your intended audience before launch to better direct your pricing efforts. All that’s needed for that is an invitation, a venue, and some coffee:)
Great! I set up an account at http://www.surveymonkey.com It was very easy to do and the surveys are simple to develop! Thanks!
wow that was great information…
Greetings D. Benard Webster! Many thanks for the 4C’s. I find pricing to be the greatest challenge. Personally I want to help all people,professionally time costs. This video provided helpful tips that will allow me to assert my pricing with confidence. Question: I am a service based business (media/pr/marketing). Is it accurate to assume that my price point will changed based upon household income? OR is it most effective to set a 3-tier pricing allowing me to adjust services and time based upon the consumers income bracket? Many thanks.
I would use (3) tier pricing as you suggest to avoid the appearance of price discrimination. This would also allow you to justify minimum hours per engagement. Any price differential would then be a function of “added time for added value” that a higher income client is conceivably more willing and able to pay for. View more small business resources at http://stepforwardbusiness.com. Cheers!
Thanks for today’s insight on how to set appropriate price points for goods and services.
For my hosiery company, adding value to my product is key.
I truly needed this. I am just starting (less than 2yrs old) and due to my family’s relocation. I have been conflicted about my price points.
Much appreciation for the info. These videos are extremely helpful
Thank you for the advice for getting to know your marketplace value. I see someone has already asked my question as to the best source to survey your customer. I will check out http://www.surveymonkey.com today!
Thanks, your strategies sound solid and well thought out?? If I’m trying to determine a price point for a professional writing services that includes grants, general business correspondence, RFPs, etc? The only real labor involved is my time spent doing research, writing, and my intellectual property, how do you price point those items. Thanks!
Hi OhioGrind–you can take two approaches–use a flat rate for the service which includes the minimum hours that you might commit to the writing, research, etc. x an acceptable hourly rate (eg $75/hour x 10 mimumum hours=$750). Or you choose to take a percentage of the grant on the backend. The latter represents more of a risk but ultimately a greater gain.
I sell handmade cosmetics, so I think it would be easier for me to research optimal price points for my products, but I’m wondering how this approach works for artists, who may create something that may not be currently in the market?
Market research is the key to avoiding the risks of selecting a price point that doesn’t resonate with your target audience. Being an artist (which I’ve been professionally:) still requires the same discipline–surveying galleries and online distributors to identify current pricing strategies for their unique audiences.
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