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How Much Are You Going To Charge? [Medium]

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.

  1. You meet their expectations, putting yourself on even footing with your competition.
  2. You undercut their expectations, taking an advantage over your competition
  3. 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]

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Gresham Harkless Jr.

Gresham Harkless is a Media Consultant for Blue 16 Media and the Blogger-in-Chief for CEO Blog Nation. CEO Blog Nation is a community of blogs for entrepreneurs and business owners. Started in much the same way as most small businesses, CEO Blog Nation captures the essence of entrepreneurship by allowing entrepreneurs and business owners to have a voice. CEO Blog Nation provides news, information, events and even startup business tips for entrepreneurs, startups and business owners to succeed.

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