The Price is right: The Four Ps of Marketing continued
Once you have created your product and decided where to market your business, it’s time to determine a price for your services. Setting a price for your products or services is not always a simple task, and may require a great deal of market research in your industry to establish a fair price. You will want to compare how other companies in your industry price their products to help determine where your business fits in.
Pricing can be a delicate task. Charging too little may make it more difficult for you to create a sustainable business through selling your products, at least when you initially launch your company. Your customers may also incorrectly perceive your products as being low-end compared to other companies. On the other hand, charging too much may alienate many potential customers and stop them from purchasing your products. Finding a balance between how much you believe your product or service is worth, and its perceived value by the public, is vital when settling on the right price your product.
For example, iContact is the most affordably priced email marketing service in the industry. I believe that email marketing is about establishing strong relationships with your customers, and that it shouldn’t impact your business’s middle line. To establish a reasonable price for our customers, we researched the pricing plans and subscription packages of other email marketing companies in our industry, and came up with a fair price for our customers.
Thanks for reading, and I’ll be back at the end of the week to conclude our discussion on the Four Ps of Marketing.