{"id":8239,"date":"2017-02-08T08:30:47","date_gmt":"2017-02-08T13:30:47","guid":{"rendered":"https:\/\/www.specialtyansweringservice.net\/?p=8239"},"modified":"2018-06-19T14:04:55","modified_gmt":"2018-06-19T18:04:55","slug":"small-business-pricing-to-win-6-common-mistakes-avoid","status":"publish","type":"post","link":"https:\/\/www.specialtyansweringservice.net\/small-business-pricing-to-win-6-common-mistakes-avoid\/","title":{"rendered":"Small Business Pricing to Win, Part 4: 6 Mistakes to Avoid"},"content":{"rendered":"

Welcome to part 4 of our Small Business\u00a0Pricing to Win series. In Parts 1<\/a>, 2<\/a> and 3<\/a>, we explored pricing strategies, factors that influence price, and how to decide on the right price for your particular offering.\u00a0In this last entry, Part 4, we will show you the 6 most common mistakes that small business owners make when determining the right price for their product or service and how to avoid them.<\/p>\n

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  1. Being the lowest price in the market<\/strong><\/li>\n<\/ol>\n

    While “low price equals high volume” is a fundamental economic theory, it is primarily applicable for non-differentiated commodities. In laymen\u2019s terms, that means your offering can\u2019t be differentiated from competitors\u2019. In that scenario, you basically wouldn\u2019t be in business. But if you are in business, then hear this: pricing low often creates multiple problems \u2013 it leads to a poor perception of quality in the customer\u2019s mind, incites price wars with the competition, and sets the bar super low in terms of the value that you should be providing. So, unless you are a giant like Walmart, pricing low is best avoided. Instead, look for ways to add value<\/a> to your offerings, and command premium prices.<\/p>\n

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    1. Pricing high and not selling right<\/strong><\/li>\n<\/ol>\n

      Though\u00a0pricing low can be harmful, pricing high and not being able to communicate value to your customers is disastrous. If you are unable to demonstrate why your products and services warrant a fat price tag, customers will leave you and never come back.<\/p>\n

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      1. Forgetting the message that price communicates<\/strong><\/li>\n<\/ol>\n

        When small businesses price their offerings, they usually take into consideration the costs involved, their anticipated profits, and how the competition is pricing. But one thing that is often forgotten is the fact that pricing is a strong positioning tool. Ever heard of the psychology of pricing<\/a>? When you price your product high, you are communicating a first-class image to the consumer. Thus, other elements of your brand should also communicate a consistent message:<\/p>\n