If you have been following the blogs, I have told you the history of Taylor – Supply and how far the company has come from being a very small business to becoming a pretty nice size business. One thing I have not mentioned yet is how much I charge for specific items and what kind of special discount bundles I have.
I decided not to charge really high for my items because I want more business. Sometimes when it comes to owning your own business in the beginning you have to charge a lower price because you want more customers and you want to give yourself a chance to build up a customer base and some referrals first before you start charging really high prices.
So, the obvious way that charging too low can hurt you is you will not be able to make enough profits for your business. In order for you to stay in business you must have a positive ROI. Sometimes people think that they are charging too much so they drop to a lower price and actually wound up cheating themselves.
It is true. Sometimes people are looking for the biggest bargain they can get and this usually happens with people who are more frugal. What some people don’t realize is that people think there is a correlation between price and quality. So the higher you charge for something the higher value they think it is. You should ALWAYS do your best in producing the best product or service but if you know your stuff is good, there is no wrong in charging a little higher than your competitors.
If you try and charge a little higher for your product or service and it does not wound up working for you, what you can do is charge a pretty reasonable rate in the beginning and as you build clientele and people are making a buzz about you, you can then start to slowly increase your prices.
If you need more money you can always offer specials. Like a 2 for 1 deal. With my company if you order 300 t shirts I throw in 150 pens $50 off. You can charge higher for this if you want. Just as long as people feel like they are getting a deal, they will by from you.
Those are some tips to help you with pricing your product or service. If you like the post please share! Talk soon.