How to price your products to supercharge your sales 🚀

Nailing your pricing is pretty important whether you sell products or services.

If your prices are too high, you'll struggle to sell and if they’re too low, you won't be able to cover your costs or make a decent profit.

And when it comes to your pricing strategy, you need to make sure you’re making a profit as well as keeping your customers happy!

When I first started Bijou Concierge nearly 11 years ago my pricing was way too low! So, it’s no surprise that I attracted the wrong type of client. You know the sort - they want a Rolls Royce service on a Skoda budget! 🙈 Once I started charging my worth, I began attracting the right clients who didn’t quibble over fees or ask for discounts!

If you want to supercharge your sales through pricing, focus on understanding your customer's perceived value, explore competitive pricing, & use psychological techniques to make prices more appealing.

You can also consider offering a range of options for your products/services, being transparent about pricing, and continuously refining your strategy based on customer feedback and market trends.

My Top 11 tips to supercharge your sales

1. Narrow down your niche – the narrower your market niche, the more you can charge! This is because a niche market is often a loyal group of customers/clients who are willing to pay a bit more for the kinds of unique products and services that they are passionate about, especially since they are not so easy to find.

2.  Know your target market –successful marketing relies on understanding your target market. You need to know what type of person you are selling to (your ideal client/customer) and why they would be interested in your products/services. A target market is important as it will help your brand stand out from your competitors, establish a positive reputation and position you as an authority in your niche. Obviously if you provide luxury goods or high-end services, your target market will be more affluent so will be able to charge more.

3. Use psychological pricing –  the science of psychological pricing is rooted in behavioral economics and cognitive psychology. Consumers perceive value differently based on how prices are presented.  Leveraging psychological pricing will increase the chances that your customer will make a purchase.  For example, use smaller fonts for prices,  price products ending in .99, bundle products together, run flash sales and Buy One Get One Free (BOGOF) offers.

   

   Leveraging psychological pricing will incease your sales

4. Research your competitors - competitive pricing will help you establish your brand positioning based on price point. For example, are you budget, premium or somewhere in the middle? It will also help you identify where you can lower your prices to gain a competitive edge or increase them to grow margins. It will also give you insight into your competitors existing pricing strategies. Once you have this knowledge, you can optimise your pricing as appropriate.

5. Know your costs – you’ll need to consider your fixed and variable costs when you do your pricing. Fixed costs are the costs associated with your business's products or services that must be paid regardless of the volume you sell. One example of a fixed cost is your overheads. A variable cost, or variable expense, is the price of raw materials, distribution, and labour associated with each unit of product/ service you sell.

6. Charge based on value not time (service-based businesses) - set your pricing based on what benefits your customers are gaining from your service - for example if you have a specialised skillset, the speed of delivery and who your ideal client is. If in doubt, price higher rather than lower. You can always adjust it later and it’s easier to go lower than the other way round!

7. Sell premium products and limited-edition products (product-based businesses) – you’ll be able to sell your products at higher prices if they’re premium/limited-edition. Obviously, handmade products should be priced at the higher end as the customer is buying something special as opposed to mass produced products.

8. Position yourself as an expert in your niche – if you want to charge higher prices for your products or services you need to position yourself as a ‘trusted’ expert. A blog is a clever way of achieving this. It goes without saying that people will be happier to pay more for your products or services if you are the ‘go-to person’ in your niche.

9. Customer Satisfaction – this is vital whether you’re selling products or services. For products, offer a money back guarantee if the customer is not 100% satisfied and for services, go the extra mile and follow up with your clients after you’ve completed your work to make sure they’re happy. Customers are often willing to pay more if a brand has a good reputation than for a brand with a poor reputation. This is likely to make the business more profitable.

10. Pricing needs to be transparent - price transparency helps consumers determine price fairness of the product or service you are providing. By being transparent, it will give you an advantage when you want to increase your prices. When consumers have insight into how businesses set and change their prices, it helps them empathise with any decisions made regarding their pricing.

11. Build a strong brand identity – a strong brand identity will help you add long term value to your small business. And you’ll be able to command a higher price for your products or services if customers/clients perceive your brand as more desirable than your competitors! A strong brand identity will also help promote customer loyalty and therefore supercharge sales. For example, Heinz can charge more for their baked beans than a generic supermarket brand.

🚀Small Business Pricing Toolkit

👉For a deeper dive into pricing, grab a copy of my ‘Small Business Pricing Toolkit’ which will help you nail your pricing without the faff! It’s suitable for product-based and service-based businesses.

💰Use Discount Code: GETSHITDONE10 to get your 10% discount

📢 AND FINALLY A FEW WORDS FROM ANNIE

I hope you found this week’s newsletter helpful.

If you’d like to book a bespoke Marketing Power Hour⚡ for only £49.99 for a limited time only, please drop me an email - [email protected].

P.S. Next week’s newsletter is all about buyer psychology🧠so don’t miss it!