One of the most important decisions you have to make when starting a small business is where to set your price. Too low and your company will struggle to get off the ground, too high and you won’t be appealing to customers. There are a lot of factors that need to be taken into account when deciding where to set your price.
Pricing is a decision that needs to be made with the help of data, not through guesswork. One option is to create a landing page on your website that describes your product or service and the price. Then, you can use an A/B testing tool to display different prices to different subsets of potential customers and see which prices receive the most favorable response. Tiered pricing is another good, simple way to find out which price points are going to drive the highest conversion rates. With tiers, you can also find out which features will be the most valuable to your consumers. Finally, many first-time entrepreneurs make the mistake of asking customers how much they would pay for something. Instead, you should pre-sell your product or service by asking for the sale. You’ll find out very quickly how much people are actually willing to pay. Check out the article below for even more tips on how to decide on pricing for your small business!
Read the full article here: 10 Tips on Pricing Your Product or Service