Notes from Jeff York

Small business marketing thoughts from a marketing small business owner

Posts Tagged ‘price point

Are you sure the price is right?

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sprocket kitNo one can deny it. You have spent a great deal of effort and energy in determining the price of your services and/or widgets. You looked at cost of construction, pulled apart your competition’s pricing, and nailed the price points the market will bear which you will make enough of a profit margin to build and grow your business.

Enter the recession. People are thinking twice about every single purchase before they make it. They are thinking long and hard about your price point. If they don’t continue to see true value in your offering, they are going to pass. Pass on you for too long and you could no longer have any mind share within your customer base (you are still advertising, aren’t you?).

Before you head too far down this path, now is the perfect time to take another look at your pricing structure. If you’re like many businesses, you did this initial work when you introduced your business or product, but simply adjusted for inflation and may have become complacent.

Take another look at your own pricing. Are the components cheaper? Is there a new technology out there that would lower your cost per unit? Any way in which you can demonstrate additional value from your business in the current environment will give you additional advantages over your competition.

Written by Jeff York

May 25, 2009 at 7:01 pm