3 ms·
Price high. Better yet - price ridiculously high. At $25 a month, you are creating the limit of your market size at $1.5MM. If $1.5MM isn't enough for you, y
by guynamedloren 16y ago
Price high. Better yet - price ridiculously high.
At $25 a month, you are creating the limit of your market size at $1.5MM. If $1.5MM isn't enough for you, you're nailing your own coffin shut. You will never exceed that limit unless there is a sudden influx in businesses to the niche or you drastically change your product - neither are very feasible or ideal situations.
I read somewhere that you should set your price as high as you can without breaking out in laughter. Almost a ludicrous concept at first glance, but ponder this: to your market, that ridiculously high price might be actually seem ridiculously low for the value that your product adds to their business.
So instead of $25/mo, price your product st $250/mo. If your market sees the value in your product, it will sell - and your $1.5MM cap becomes $15MM instantaneously. If your market doesn't see the value in the product, adjust pricing accordingly so that the price matches the value. After all, it is relatively easy to lower prices, but nearly impossible to raise them.
Final thought - consider perceived value. The price itself speaks value to some. A low price might say "We are new to the business and don't really know what we're doing. The biggest benefit we offer is that we are less expensive than your current solution, but we might not be able to offer you the best service in the world." A high price might say "We're serious and we're here to stay. Though we not be the cheapest solution, our service vastly exceeds that of our competitors, ultimately improving your business."