Pricing strategies are vital to the success (or lost opportunity) of your offering, whether it be a product or a service. It is, however, an element with which entrepreneurs struggle the most because of a lack of data or experience to make informed decisions.
Since pricing is one of the factors that will most likely highly impact a firm’s objectives, founders should devote considerable effort into crafting a marketing strategy to gather RELEVANT and INSIGHTFUL data from the RIGHT AUDIENCE in the most efficient way. It is critical to arrive at an optimal pricing strategy before launching to market.
“The moment you make a mistake in pricing, you’re eating into your reputation or your profits.” – Katharine Paine
This article focuses on nine common pricing strategies, the factors that influence them, and some of the potential consequences of each.