Create a Profitable Pricing Strategy

Free Course

 

Welcome to Create a Profitable Pricing Strategy

 

 

Pricing can determine whether your business succeeds or fails – yet too many entrepreneurs rely on guesswork or back-of-the-napkin calculations to set prices. This learning stream reveals a proven methodology for developing a pricing strategy, as well as ways to increase customer perceptions of value so you can justify higher prices and boost margins. As part of the process, you’ll learn how investors evaluate pricing strategies, the advantages and drawbacks of different pricing models, how to calculate margins, average margins for specific industries and retail categories, how to gauge price sensitivity, and how to build a pricing profile specific to your offering based on eight key variables. Tips and examples are included for both product- and service-based businesses, as well as businesses that contend with seasonal pricing variations. The session offers guidance on bundling, discounting, and other pricing techniques, which you can apply in a workshop session that walks through the pricing strategy framework step by step.

You will learn…

  • How do customers perceive price and value?
  • What will customers pay more for?
  • Why is pricing important to potential investors?
  • Which pricing model should I use for my business?
  • How do I determine how much pricing flexibility I have?
  • How can I justify higher prices in a competitive market?
  • What are ways I can add value that boost margins, not costs?

If you have any questions, please email info@entrepreneurnow.com.

Pricing Strategy Explained

The price you set for your product or service broadcasts its value to potential customers. This Microcast provides an overview of the many variables that impact the pricing, pricing models, and using competitive analysis to achieve competitive pricing and healthy margins.

Pricing Model Basics

How will you price your product? Gain an understanding of three key pricing models: Cost-based pricing, market-based pricing, and value-based pricing. This overview includes a look at popular products and services' pricing models—yogurt, dry cleaning, nutrition bars, furniture, house cleaning, nail salons, hotels, and more.

Pricing Model Part 1- Research & Margins

Gain an understanding of how margins work so that you can choose the right price for your product or service. Having a justified pricing strategy will help you avoid common mistakes such as guessing at price-setting, skipping competitive pricing research, leaving money on the table with a too-low price, or misunderstanding the whole value of what you're offering. Learn how supply and demand for your product or service impact price, how to quantify the level of value you're delivering (don't under-value it!), and how market forces impact your pricing.

Pricing Model Part 2 - Price Influencers

Give careful consideration to the eight pricing influences explored in this video: Competition, demand, uniqueness, scarcity, quality, margin, being first/market saturation, and the customer value-perception. For each of these pricing influences, Ken explores tactics that you can apply to your business, supporting you in setting the most appropriate price for your product or service—without leaving money on the table. If you don't already know what a Cabana Combo is, you soon will!

Pricing Model Part 3 - Pricing Models

This walk-through details the advantages and disadvantages of the top three pricing models: cost-based pricing, market-based pricing, and value-based pricing. Included are examples of products and service from a variety of industries—travel, retail, furniture, and tech. This walk-through also covers margin considerations for ensuring that your pricing model is financially sound.

Create Your Pricing Strategy Workshop

Time to put pen to paper—or fingers to keyboard. Take a look inside the Prep Worksheet that prepares you to write the pricing strategy section of your business plan. The key to success is taking the time necessary to deeply understand your business and be prepared to run it—use this workshop and Prep Worksheet to do just that.