How Much Should You Charge for Your Products and Services?

If you integrate our online CRM software into your workflow, you will find that the difficulty of staying on top of tasks like sending out price quotes is eliminated. While we can take care of those kind of tasks for you, it’s still up to you to figure out the right pricing strategy for your products and services.

 

Since pricing commonly seems just as much like art as it does science, here are several ways to nail down the right point:

 

Use a Pricing Table

 

If you’ve looked at the website of a Web 2.0 SaaS application, you have seen a pricing table with multiple options like Standard, Advanced and Business. The reason so many sites feature a pricing table is because they work very well. But if you don’t sell a piece of software, you may think this strategy won’t work for you.

 

However, that’s actually not the case. Regardless of what you sell, a pricing table can make it possible for you to deliver more compelling quotes. And what’s cool about this option is even if you use multiple pricing structures for different customer segments, you can easily tailor a table for each segment.

 

Add a Higher Price Point

 

If you offer a Basic, Plus and Premium version of your product or service, you probably want most customers to pay for the Premium rate. However, even if it offers a great value, many customers may go with the Basic or Plus options because they feel it saves them money.

 

To counteract this behavior, add a higher price point. By adding an option like Max, it will make the highest option you actually want customers to pay for seem like a better deal. And although you’re not actually worried about customers paying for the absolute highest option, you may find that a small number are actually interested in it.

 

Take Advantage of Price Anchoring

 

The more you can give prospective for a purchase, the better. By anchoring the prices you quote, you can drive home the value that prospects will receive as a result of purchasing from you. This tactic can be anything from explaining how much money will be gained from buying to showing how much money someone will waste if they don’t make a purchase.

 

Eliminate Risk

 

Even if you successfully price what you’re offering so that it’s in the perfect range for potential customers, there’s a hurdle that can prevent them from buying. Because humans naturally want to minimize risk, the prospects who receive your quote may still hesitate to pull out their credit card and make a purchase.

 

If you want to get rid of that hurdle, you need to make it clear that buying from you is a risk-free decision. The best way to do this is by offering a great guarantee or refund policy. Although many businesses worry that people will take advantage of this type of offer, the benefits of eliminating risk far outweigh the costs.

 

What pricing options have worked best for your business?

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