A stale pricing strategy is an easy way to lose out to your competition. Whether you're charging too much or even charging too little, the wrong price can be the difference between success and failure. But how do you decide?
We asked five entrepreneurs when they think the best time to reexamine your product or service pricing structure is. Take a look at their answers and make sure you've got your pricing strategy under control.
On an Ongoing Basis
You constantly need to evolve and be able to change according to your customers’ needs to try to be better. Review and reevaluate your product line and consider what needs replacement or improvement and keep up with this ongoing plan to get better sales opportunities.
– Jessica Baker of Aligned Signs
When There’s an Issue
While I am a fan of at least partially reviewing your pricing structure on a regular basis (I’d recommend monthly), I don’t think a major re-examination or overhaul is necessary unless you’ve noticed an issue – a high volume of churn, for example.
– Steven Buchwald of Buchwald & Associates
When Your Breakeven Shifts
Typically, for a business, you want to look at the breakeven. If you raise the prices slightly, those price hikes are pure profit, and you should take advantage of that. If you price hike enough, you can get 100 percent profit increase without an increase in business. There are so many factors you need to look at, and you should look for the best ways to optimize your pricing plans.
– Ajmal Saleem of Suprex Learning
When the Market Shifts
Our agency is able to identify when market conditions (like seasonality, increased competition or diminishing demand) are changing from paid media channels such as Search Engine or Social Network PPC. The changes that impact the cost or volume of traffic can be compared against sales metrics to see if staying the course is feasible.
– Justin Moodley of LASANAN
When You Notice a Discrepancy in Sales
“Pricing structure depends on what you're offering and the desired competitive positioning of your business. Hearing “yes” every time means it's probably time to raise your prices. For most businesses, it's normal to hear “no” nine times out of 10. Take the time to evaluate: What my competitors are doing? What are larger industry leaders doing (identify trends)? What are my customer's expectations?”
– Ryan Meghdies of Tastic Marketing
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