Let me be the first to say your pricing is made up.
There will be some people who won’t ever pay it and there will be some people who will pay double. The goal of pricing is to charge as much as someone is willing to pay for your service and you simply wont know until you ask.
(eventually you’ll have so many asks, youll see a pattern and that’s what were going for here)
This is called VALUE BASED PRICING.
My favorite and I’ll teach you in another post how to increase the value but in the meantime…lets continue.
Also in good conscience, I need to warn you that it’s wise to consider your expenses and margin for growth too.
So repeat after me, you will not operate at a loss.
”I will not operate at a loss,” said you.
Anyway, there’s a great guy from the UK, Phil Jones (go read all his books) and he shares this story about when he was a kid and he used to wash cars.
He said that he charged $3.
So he charged $3 and decided to raise it 50 cents and nobody batted an eye.
Then he decided to raise it to $4 and some people grumbled.
Then he raised it to $4.50 and he realized at $4.50 there was a lot of backlash.
So the point here is, you have to experiment with the pricing to see how much people are willing to pay.
THIS IS HOW YOU CAN HIT YOUR OWN PRICING SWEET SPOT in 2 SIMPLE STEPS
1. ask how much my favorite client would be willing to pay for the thing you sell?
2. then after after the service is rendered, ask how much they would have paid for it knowing what they know now?
2.5 ask specifics about what would make them pay more? you wanna know what will increase the value in the clients eyes.. because the more perceived value, the higher the likelihood of commitment.
Determining your pricing is a market research question and it can start as easily with these 2 questions.
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