Do you remember the first time you had to set a price for your products or services? The first time you had to share that price with potential customers?
I do. I sweated over the price and then ended up negotiating that price down to make the sale.
While I was thrilled on the one hand, I was also disappointed. Was that what business was going to be, a constant compromise of my value?
It took me a couple of years to realize that my price was not the problem. My target audience was.
In any case, since then I've figured out quite a lot about pricing, too much to put into one email, so this will be a two-parter (apologies in advance for that).
This week, I'm focusing on pricing models.
Simply put, a pricing model is the strategy or method used to establish the best pricing for your products or services.
Here's a short list of some of the most common pricing models employed today:
By now, I hope you get how all the aspects of your business model, especially the ones I've delved into over the past few weeks (Revenue Models, Cost Structures, and Channels) work together to support a successful pricing strategy.
Everything is connected or perhaps, more accurately, intertwined.
If you need help figuring it all out, I hope you'll allow me to help you. You're always welcome to schedule a complimentary call.
Until next week, don’t just wish you could charge more, do the work to make your audience happy to pay what you wish to charge.
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I help entrepreneurs leapfrog over the typical potholes that derail most small businesses with inspiration, motivation, education, and support across a wide range of business topics drawn from over a decade of running my own business, teaching entrepreneurship for the City of New York, and coaching and consulting privately with dozens of women and minority small business owners. Honestly, why go it alone when help is an email away?
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