Getting Paid for What You're Worth
Hi everybody! Thanks for joining us here in the Community, and more specifically, the Business Discussion board! My question for you today is, "Are you paid what you're worth?" That's definitely an important question that more than likely everyone has asked themselves at one point or another. I found an article from inc.com that offers a few ways to make sure your product or service is priced to maximize profits. Here are a few that were mentioned...
Don't price on the basis of your competition
This may be a little easier said than done. It does make sense to price your product similar to that of your competition, but "the majority of startups launching new products undermine their pricing by about 10 to 50 percent." This can also be a losing strategy because it undermines the value of your product or service. Keep in mind you're not selling [fill in the blank with what you're actually selling], you're actually selling value.
Break the psychological pattern
I'm adding my own personal story to this point. I follow a woman on Instagram who makes handmade jewelry and she said, "It blows my mind that people would spend their hard earned money on something that I made." This is what the writer here is speaking of when they mention the psychological pattern. Thoughts like, "This is just something I created. It can't be worth that much." can lead to you pricing your goods lower than what they're worth.
Err on the high side
The writer here mentions a friend of theirs started a drop-ship business and made $2,000,000. Wow that's awesome! Great job! Well... the flip-side to that... He spent $1,999,000 to get there. That can happen with a low margin. One way to prevent that is to err your prices on the high side. You can always offer a discount later on if you feel the need!
There you have it! Just a few pointers to keep in mind when you're pricing your goods or services. What about you? What tip would you add to the list to make sure others are getting pair what they're worth? Have a good one!