We take a deeper dive into pricing in this episode and talk about the questions you need to answer when pricing services in your business. To listen to the episode hit the play button.
We take a deeper dive into pricing in this episode and talk about the questions you need to answer when pricing services in your business.
To listen to the episode hit the play button.
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In this episode we dive deeper into the concept of pricing your offerings in a service type business. While there is not one right answer, we’ll talk through the types of things you need to consider and understand when pricing services.
*Pricing services is a little bit science and little bit art with also some psychology thrown in the mix.
*There are some essential questions entrepreneurs need to answer in considering their pricing strategy and what they are trying to accomplish.
*Cost, profit, understanding your market, value and perception of value all play a role in pricing services.
*Lisa talks about what she sees as the bottom line in pricing decisions and creating the means to create a model that enables you to achieve what you are trying to achieve in your business.
*Various pricing models are covered including cost plus, value based, competitive, volume, feature based, and the razor blade model.
*The issue of freemiums is discussed and how they fit into your business and pricing models.
*The objectives that you are trying to achieve are covered along with the competing factors that need to be considered with those pricing objectives.
*Other factors are discussed surrounding your target market, quality vs. price and the future trends in your market for pricing.
*Tips are also discussed about managing pricing going forward after you have set your pricing strategy.
*Lisa offers some tips on taking your research further on pricing and shares some informational links below in the resource section.
Resources and Links
To contact Lisa Roberts to get objective advice or talk through your own business and pricing decisions you can get in touch with her here to set up a Quick Care Consulting session.
From the Help Scout Blog – Pricing Psychology: 10 Timeless Strategies to Increase Sales
From the Kissmetrics Blog – 5 Psychological Studies on Pricing That You Absolutely MUST Read
Here is another episode related to pricing that you may want to listen to- “Costs and Pricing What You Need to Know”
Note: Links in this post may be affiliate links. Lisa Roberts is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.
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Lisa Roberts is a business operations consultant who advises growth company entrepreneurs in successfully managing growth and the challenges they face along the way. She has over 25 years of experience in operations, finance and administration and spent several years in executive roles at a high growth company. She recognizes that there is a fine line between success and failure in a growing business and that entrepreneurs need to focus on managing finances, creating a sound operation and employ good business practices to stay on track. You can find out more about her here