When starting a new business, the price point (what you charge for your services or product) may be difficult to estimate. In my experience many people tend to under value what they offer, instead of being confident and going to market with a good value for money price point.
I’ll give you an example I came across a few years back. It was back at the beginning of the online revolution, when more and more businesses were coming to understand the importance of being online.
A client was setting up his own web design business. He handed me a leaflet offering a web site to business customers for only £150. After several months he had no inquiries and really could not understand why. Bear in mind, this was several years ago – £150 was very low cost website.
I suggested he amend his marketing material and advertise his services for £399. Within a month, he had 4 orders – nothing had changed but the price! His clients saw his services as value for money and weren’t cheapened by a low price point.
Written by Senior Nwes Business Advisor, Sergio Aschettino.