Communication Services

Do Not Be Afraid To Talk To Your Customer About Pricing

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<div class="feed-shared-update-v2__description-wrapper" tabindex="0"><div class="feed-shared-inline-show-more-text feed-shared-update-v2__description feed-shared-inline-show-more-text--minimal-padding feed-shared-inline-show-more-text--expanded " tabindex="-1" data-artdeco-is-focused="true"><div class="feed-shared-text relative feed-shared-update-v2__commentary " dir="ltr"><span class="break-words"><span dir="ltr">You should not be afraid to talk to your customer about pricing. It&rsquo;s not a secret you&rsquo;re going to charge them at some point, and acting like it is a secret is doing you and the customer a disservice, because they need you to stay in business if they&rsquo;re going to get long-term value out of the business.<br />The other reason it&rsquo;s so important is that the ONLY data source that&rsquo;s going to tell you what your value is, is your customer. No one else, no formula, no workaround, is going to get you to this answer, so just go head first and ask them.&rdquo; - Patrick Campbell<br /><br />With that said, can you really ask a customer directly what would you like to pay for this product/service?<br />While there are many approaches that help you arrive at the right price. One of the easier methodologies to apply is the Van Westendorp Price Sensitivity Meter which revolves around 4 key questions to arrive at the right price.<br /><br />1. At what price would you consider the product/service to be priced so low that you feel that the quality can&rsquo;t be very good?<br />2. At what price would you consider this product/service to be a bargain&mdash;a great buy for the money?<br />3. At what price would you say this product/service is starting to get expensive&mdash;it&rsquo;s not out of the question, but you&rsquo;d have to give some thought to buying it?<br />4. At what price would you consider the product/service to be so expensive that you would not consider buying it?<br /><br />This strategy works well during new product development to get you the Optimal Price point. The bottom line is don&rsquo;t guess pricing, figure out the right way to arrive at the same.<br /><br /><a href="https://www.linkedin.com/feed/hashtag/?keywords=marketing&amp;highlightedUpdateUrns=urn%3Ali%3Aactivity%3A6874680200886571008" data-attribute-index="0">#marketing</a>&nbsp;<a href="https://www.linkedin.com/feed/hashtag/?keywords=pricingstrategies&amp;highlightedUpdateUrns=urn%3Ali%3Aactivity%3A6874680200886571008" data-attribute-index="1">#pricingstrategies</a></span></span></div></div></div><div class="feed-shared-image feed-shared-image--single-image feed-shared-update-v2__content"><div class="relative"><div class="feed-shared-image__container"><div class="ivm-image-view-model "><div class="ivm-view-attr__img-wrapper ivm-view-attr__img-wrapper--use-img-tag display-flex "><img id="ember6465" class="ivm-view-attr__img--centered feed-shared-image__image lazy-image ember-view" style="display: block; margin-left: auto; margin-right: auto;" src="https://media-exp1.licdn.com/dms/image/C4E22AQGkkRoDLH5ivQ/feedshare-shrink_800/0/1639051483867?e=1642636800&amp;v=beta&amp;t=iHP873-cTWiF06r4-e2FnEaVKfcMqAXc0017GMvdfJY" alt="No alternative text description for this image" width="600" height="437" loading="lazy" /></div></div></div></div></div>
KR Expert - Abhishek Shetty