Good article on pricing your product or service. The criteria should be “what the market will bear”. Surprisingly, this is not the decision criteria most businesses use . Read tips and advice. Small business, revenue and operations
Excerpt: So how do you find out how much your customers will pay? It’s simple: Ask them.
Of course, you can’t ask customers directly how much they are willing to pay — they’ll likely shade the truth (by giving a lower price) to their benefit. That said, there are a variety of ways to better understand how your customers think about your price. In my work, I often interview customers, seeking to identify “areas of disconnect” — profit opportunities — where customers view pricing differently than management.
Here are the “secrets” that I use to better understand how customers think about pricing:
Read full article via How to Find Out What Customers Will Pay – Rafi Mohammed – Harvard Business Review.