Many women in business struggle to price their products or services. How do you know what ‘the right price’ is? One way is to calculate the material, manufacturing cost or hours of planning you’ve put in to the product. Unfortunately, that idea is not the best way of determining a good price. The right way is to match the price to its value, and then focus your marketing on showing your customers this unique value.
Do you understand the value of your product or service? The value is how well it changes the life of your customer. It saves people money or time, prevents hassles, or solves problems. It’s not only how your product does this, but how it does this differently from other products on the market.
To define what about your product sets it apart and helps people solve their problems, you should create a UVP – Unique Value Proposition. This is a simple sentence that makes a promise to the potential customer, telling them exactly how using the product is going to improve their lives.
With this statement in hand, you’re ready to start establishing your product’s unique value. Here are some guidelines for doing this.
We have a natural tendency to talk about our product or service in terms of its features. After all, the features are what you’ve been developing, what you’re most proud of, and what sets it apart. But instead, focus on how these features translate into benefits for the user.
For example, your software program puts all of a user’s social media feeds into a single news feed. This is a great feature. But go one step further and add that it saves the user time checking each individual feed and helps them see trends with more clarity so they can make the right marketing decisions.
Even though you may not wish to actively compete with your rivals, it’s important that you know the competition and their products well. Your customers may have experience using a competitor’s product, so you need to explain how yours is different.
During product development, make sure your product offers something unique. If not, it still needs work. If your pricing undercuts the competition, this could help you sell more, but your selling point shouldn’t be price. If you focus on price you are training your customer to ‘price compare’. This should be avoided as we all know that price does not equal value or results.
The price you put on your product or service depends on the unique value it offers to your customer. What is the solution to their problem worth?
What have people told you they love about your product or buying from you? Why do customers switch from a competitor to you? Why do people keep buying repeatedly from you? Why do they become brand advocates? Open up a dialog with your customers so you can get this feedback from them to reveal your product’s unique value.
Once you know how to explain your product’s unique value, the sales process becomes much smoother. You hardly have to sell at all. You just need to have a conversation with the prospect where you show them what your offering does for them and decide together whether it matches their needs.
Do you want to learn more about discovering your value and pricing your products the right way? Register your interest in my group coaching program “How to Package and Price your Expertise”
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