A question people like to ask is how much they should charge for their startup or services. Software subscriptions, marketing services, ad-networks, it’s all the same. Concerns about settling on pricing structures are universal.
In general, founders and entrepreneurs and professionals do not have clear methodologies for coming up with pricing. This is common, and it comes up a lot.
What this means is that you need to take your margins seriously and in order to do so, take your pricing seriously. There’s 2 considerations I want to talk about here.
Make no mistake, the most important part of your pricing is guts. Pure guts. It takes them to stand in front of a customer and state your fees and price schedule without flinching, without adding caveats and without hinting that you’ll take any price they offer you out of sheer desperation.
Your customers already have a limit to what they’re willing to pay….
But people are used to paying a certain amount (it’s low and depressing) and will likely balk at paying more.
So what do you do? You have three options here.
- You meet their expectations, putting yourself on even footing with your competition.
- You undercut their expectations, taking an advantage over your competition
- You let your pricing exceed their expectations, to the absolute limit of what they’ll stand for, and justify it with a clear value proposition.
Curated from How Much Are You Going To Charge? [Medium]
More Posts Across the Web
- Why Don’t Billionaires Quit Their Jobs? [Medium] – In this scenario, you’re a successful entrepreneur at the peak of your career—you’re a freaking billionaire. And you are, at this very instant, free (financially-speaking) to pursue whatever pastimes you desire, whether it’s painting landscapes in Tuscany or laying on the beach of some remote island you don’t even know the name of yet. In such a scenario, would you quit working and live out the rest of your life in pursuit of leisure?
- Create more than you consume [Medium] – It’s important to always be creating, but integrating doses of mindful consumption is often an important part of the creative process.