Pricing
Posted by jane - July 4, 2012
Trying to work out your pricing can be really really difficult, but it boils down to how much the customer is willing to pay. Here are some examples …
Tea bags
I am very British and I do like a nice cup of tea, so I am prepared to pay a little more to buy a branded name but only because I enjoy the taste. Over the years I have tested different makes and I admit to being influenced by adverts (although does the shape of a tea bag make a difference to how it is brewed?)
Toothpaste
I have sensitive teeth, so that reduces the toothpaste that is available. For a long time I used a leading brand of sensitive toothpaste but having tried various other makes, I now use an own brand from a large high street chain. It cleans my teeth adequately and tastes ok, so there is no need to spend more.
Lastly Wine
I enjoy the occasional glass of wine, but I do like nice wine so I buy my wine from a popular Wine Club. Over the years I have got to know the vineyards and various grape varieties that I like. So I do pay more, and I accept that Supermarkets have some cracking deals nowadays, but I am happy to pay a premium to get the wine I want.
Conclusion
The price you need to charge is the price your customer is willing to pay for your product or service.
Comments OffShare the discussion and post comments on our Facebook page. Thanks