Most people think you can’t square the circle between higher prices and happy customers.
They are trapped by limiting beliefs on what can and can’t be done with prices, and what impact it will have, e.g.:
- “If we put prices up, we’ll upset our customers.”
- “If we increase our prices, it will affect our sales pipeline.”
- “If prices increase, our competitors will take market share from us.”
But it is possible to square the circle and design a pricing model that will enable you to sell more volume at higher prices.
The key is to think differently about your pricing and your product offering:
✅ By changing to a tiered pricing offering, you can usually achieve a 10-20% increase in average selling prices.
✅ By using techniques from the psychology of pricing, you can have a powerful influence on your customer’s perception of value.
✅ By researching what your customers are really willing to pay, you can design a pricing model for new products that will have a much greater chance of being accepted.
✅ By finding services or features that are provided at low or zero cost and, if appropriate, having the confidence to start charging for them.
✅ By realising that you will often be better off with 97 customers paying £27.00 per unit, than 100 customers paying £25.00 per unit.
Don’t be trapped by the belief that there is only “one way to do pricing”, or that the “market sets the prices”.
This is nonsense. You have a much greater ability to affect and influence your pricing than you probably realise.
And you can do so in a way that your customers will appreciate, and which will make you more profitable.
You can square the circle.
For more information on these ideas, please view “Pricing Resources for 2023” or get in touch.