Pricing

Pricing is defined as the amount of money that you charge for your products. It contains indicators such as how much you value your brand, product, and customers.

Strategies

There are different pricing strategies to choose from but some of the more common ones include:

1. Value-based pricing
2. Competitive pricing
3. Price skimming
4. Cost-plus pricing
5. Penetration pricing
6. Economy pricing
7. Dynamic pricing

A winning pricing strategy

Portrays value

The word cheap has two meanings. It can mean a lower price, but it can also mean poorly made. There's a reason people associate cheaply priced products with cheaply made ones. Built into the higher price of a product is the assumption that it's of higher value.

Convinces customers to buy

A high price may convey value, but if that price is more than a potential customer is willing to pay, it won't matter. A low price will seem cheap and get your product passed over. The ideal price is one that convinces people to purchase your offering over the similar products that your competitors have to offer.

Gives your customers confidence in your product

If higher-priced products portray value and exclusivity, then the opposite follows as well. Prices that are too low will make it seem as though your product isn't well made.