Create a Profitable Pricing Strategy: Competition and 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.

Common Pricing Strategy Mistakes

Don’t make the same mistake so many other entrepreneurs do when creating their pricing model. We will give you the common mistakes to avoid.

5 Key Steps to Pricing Strategy

Here is a framework for you to follow when creating your pricing model. We have broken this down into 5 easy steps to follow.

Researching Your Market

The best place to start when trying to figure out your pricing model is researching what is already out there. Check out your competition and see what models they are using. Will you try and differentiate by using a different pricing model? Or will you be more successful using a model customer already are used to?

Case Study: Researching the Competition

Let's take a look at a case study to better help you understand the best ways to research the competitive pricing models.

Know Your 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.

Average Industry Margins

Margins can vary widely industry by industry. Here we give you a snapshot of the most popular industries and the expecting margins for each.

This course is part of a larger series on creating a profitable pricing strategy. To learn more, you can watch the following courses in this series:

• Create a Profitable Pricing Strategy: The Fundamentals
• Create a Profitable Pricing Strategy: Pricing Influencers
• Create a Profitable Pricing Strategy: Pricing Models

1. How to calculate direct margin for your product or service.
2. How to determine what price to charge at retail.
3. Specific questions you must ask about your competitors' pricing strategy.
4. How to use competitive information to inform your pricing strategy.
5. Standard margins for a host of industries.