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> I keep raising the $50 thinking the new price is crazy, and then people continue buying anyway. Yes! It is your business, and you know best, but this sounds
by ttcbj 5y ago
> I keep raising the $50 thinking the new price is crazy, and then people continue buying anyway.
Yes! It is your business, and you know best, but this sounds promising to me and reminds me of my situation. That is why I recommend that book. It argues compellingly that you want to sell less at higher margins, all things being equal. That gave me the courage to raise prices, and I ended up selling just the same/more at higher margins. Raising prices takes courage, and clearly there is some point where you go too far, but it's worth really pushing yourself emotionally to consider it early in the business. If I had not radically altered my pricing 15 years ago (15 years of massively higher income potential and counting! crazy) my life would be so different than it is now.
Rather than thinking of A/B testing, I would try to think of how much value your product adds for your customers, and then capture some reasonable percentage of that. Think of it very broadly (again, see the book). There is more value here than just the hardware/software. Your customers may value dealing with you instead of dell, etc. Try talking to some good customers about how much they would really pay. Some won't feel comfortable, but others may blurt out "we spent $3k on your hardware last year, and the truth is it's a rounding error for us. We just want someone who delivers a solution and answers the phone in person (or whatever)"
Anyway, I wish you the best of luck. After writing my original comment, I realized you had only been operating for 18 months. That, combined with your inventory assessment (I am in software, and have no inventory, so I didn't think of it), seems very promising!