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 course 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.
The price you set for your product or service broadcasts its value to potential customers. This course 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 Strategy Overview
The price you set for your product or service broadcasts its value to potential customers. This video provides an overview of the many variables that impact the pricing, pricing models, and using competitive analysis to achieve competitive pricing and healthy margins.
What Price Communicates
You would be amazed at how much information you communicate to a consumer with your price. Let's explore what a consumer (or business buyer) hears when they see your price.
Coming up with your pricing strategy is not easy, but we will guide you through the process and that process starts with scenario-based pricing.
Types of Pricing Strategies
There are three primary types of pricing strategies you can use for your business. This lesson will help you in determining the ideal pricing strategy for your business.
What Investors are Looking for in Your Pricing Strategy
Investors will be very interested in your pricing strategy. We will review exactly what they look for so you can consider incorporating that into your pricing strategy.
Test Your Pricing
There is nothing more important than to test your pricing strategy with actual buyers. We will examine exactly how to do that.
The 3 Pricing Models
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 service's pricing models—yogurt, dry cleaning, nutrition bars, furniture, house cleaning, nail salons, hotels, and more.
Guess the Pricing Model
To get you warmed up, here is a quick exercise that presents a handful of well known companies and asks you to guess their pricing model.
Examples of Pricing Models
Let’s take a look at a bunch of examples of pricing models from companies that you will be familiar with.
Case Study: T-Shirt Pricing
Here is a great case study to help you understand how the various pricing models can be applied to a T-shirt business.
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: Competition and Margins
- Create a Profitable Pricing Strategy: Pricing Influencers
- Create a Profitable Pricing Strategy: Pricing Models
What you'll learn
- The best pricing model to you for your business.
- The three different types of product roadmaps you can use.
- How to create a higher perceived value and charge a higher price for that.
- The drivers that that can influence your pricing strategy.
- How pricing and margins work together