When a business is just emerging, the following question can be asked: Should I charge less if I am starting my business? How do you think others perceive you? And it is that some entrepreneurs consider putting the same price as the competition or estimating what profits they want to obtain and thus set the price, but the best thing is to determine a strategy that suits your business.
How do you think others perceive you?
If your business is starting you cannot place very high prices or you will scare away customers, But you can not place very low prices either or you will just get into debt and future clients will doubt the quality. So should I charge less if I am starting my business?
To set a price you cannot use pre-established formulas since these formulas will not cover all the aspects that you must consider in your business.
You should keep in mind that if your customers are not willing to pay the price you place, the product will not be sold. Despite that, you cannot set a very low market price, you must differentiate yourself from other businesses and identify the potential customers of your product.
If your business has invested large amounts of money, you cannot set low prices, nor can you set prices equal to the competition just because you are new to the market.
What do I rely on to set the price?
Some consider charging less if they are starting in business, but the truth is that pricing should be based on the value that your customers can approve.
The trick is to bet on the added value of your product to be able to set a price. If you are going to create discounts you cannot exceed; if you exceed that you can damage your image if you will establish a discount, put a time limit and then say goodbye to it.
It is important if you establish a discount not to allow losses in your business. It is a luxury that because you are new to the market you cannot afford it.
You cannot set low prices just because you are new to the market; If your product brings a benefit or value to your customer, you can evaluate your price and raise it a little.
Sometimes the high price can give a good image and attract potential customers. So it is important that you establish what audience you want to reach and which are your ideal clients; Before setting a price, establish your value.
Should I charge less if I am starting my business?
So an entrepreneur, due to the fact that your business is new, it is not a rule that you should establish low prices; Before setting a price, study the possibilities, competition and value of your product.
Don’t fall under the pressure of setting low prices for being new. Sometimes although this new business can set prices equal to or even higher than the competition.
The price will only be given by the study of the added value to your product; You can take advantage of the fact that your product will bring some benefit to your customers and add a slightly higher value than what you had initially thought.
Reframe your prices and don’t be afraid to raise them if necessary. Being new should not be an impediment to setting fair prices even when they are higher than your competition.
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Eleena Timmons