Understanding the right pricing model to use in your business is critical to your success. In this course, we will guide you through which pricing model is the right fit for your business. We will dive deep into the advantages and disadvantages of the three primary pricing models used. These pricing models are:
- Cost based
- Market based
- Value based
And here is a quick secret. There is no question that value-based pricing is by far the best pricing model you can use however your industry might force you into one of the other two. We will give you proven strategies that can help you take maximum advantage of 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.
Pros and Cons of Cost-Based Pricing, Market-Based and Value-Based Pricing
Let's take a look at the pros and cons of cost-based pricing, market-based and value-based pricing models. Depending on your product or services and your industry, one of these might be the ideal one for your business.
Choosing a Pricing Model
Now it is time to choose the optimal pricing model for your business. We will guide you through the process.
Common Mistakes in Pricing
Heads-up on some common mistakes entrepreneurs make in developing their pricing strategy.
Setting Your Price: Case Study
This case study illustrates all the steps necessary in creating a profitable pricing strategy for your business not just the pricing model used. While you are welcome to watch it, not all the concepts illustrated in the case study were covered in this course.
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: Competition and Margins
- Create a Profitable Pricing Strategy: Pricing Influencers
- How to pick the ideal pricing model for your business.
- The advantages and disadvantages of each pricing model.
- How to adjust your products and services to get the highest margins possible.
- How to avoid mistakes that many entrepreneurs make when creating a pricing strategy.