Pricing Is A Thought Process

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Price setting is a thought process not a mathematical calculation.

Often when people ask me how they should know what to charge they expect me to give them a mathematical formula to make the calculation. Determining the right price for your offer is different. It's a thought process where you look at different aspects to determine which prices are best. Businesses that treat pricing as a math problem are missing one of the most important rules of pricing:

Pricing is rooted in a deep understanding of the customer and what they value.

When you understand that you realize that a mathematical equation can’t possibly incorporate the a customers perception of value for example or how they feel about the brand. Or for that matter the competitive environment. Which means in order to set the best prices for your business, it's time to think about pricing in a different way. Start thinking about it as a thought process - one where you incorporate the different aspects that drive your pricing.

In this episode of Live with the Pricing Lady, I dispel some of the myths around price setting and share with you the formula I use with clients (hint: it’s a thought process people). The great thing about the thought process is it applies to just about any type of business. Meaning it can work for you too.

Podcast Highlights

• 1:25 Introduction
• 2:42 Where to begin
• 4:46 Get clear on your offer
• 6:18 What's the value?
• 8:33 What else is out there?
• 10:48 What will it take to be profitable?

Links:
Grab your copy of the Willingness-to-Pay Survey DIY Guide & Tool.
https://thepricinglady.com/landing-page-willingness-to-pay-tool-and-guide/

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Reach Out, Connect, or Book a Call with Janene

Get started improving your business. Sometimes it’s difficult to know where to begin. I suggest you Download the self-assessment Pricing Scorecard (https://thepricinglady.com/pricing-self-assessment-scorecard/). Get a view of what’s working and what’s not working when it comes to pricing in your business. Figure out where to start making improvements.

Get in touch with Janene. If you’ve got a question that needs answering, a challenge you’re facing or you have suggestions for future topics or guests, let me know. Contact Janene (https://thepricinglady.com/book-a-call/)