Three ways to price
- Cost plus margin: simple, but ignores what customers are willing to pay.
- Competitor-based: useful for comparison, but makes you a follower.
- Value-based: price tied to what the customer saves or gains; the best fit for services.
Applying value-based pricing
Ask: what does the customer lose without your service, or gain with it? Designing an online store may take you limited time, but its value to the client is the sales it can generate. Present the price alongside a realistic expected outcome, without exaggerated promises.
Presenting the price
- Offer two or three packages with clear levels.
- Explain what each includes and excludes.
- Don’t lead with a discount; lead with value, then an offer if needed.
Signs your price is too low
Everyone agrees instantly, you have no time, and profits don’t fund growth. Raise the price gradually for new customers and watch the result.