Is your pricing strategy based on value exchange?

To grow you must capture the value in all relationships.

Pricing Strategy
Pricing Strategy

Pricing Strategy.

Price and value are not the same thing.

Unless you are in the business of widgets, pricing and realising the value of your service can be tricky. If we take out the spreadsheets and the formulas we are left with our own perception of value and the intent of the customer to have the ability to pay.

When you hear the phrase ‘it’s too expensive’, don’t be deterred. Here is a simple analogy; if I have $20,000 and I want a Mercedes that is $100,000, the Mercedes is not ‘expensive’, it is beyond my budget. That’s the mindset you must-have when it comes to your pricing strategy.

If you are clear on your core customer and have a product or service that aligns with their budget and expectations then it is all about ensuring both parties benefit from the transaction.

What pricing strategy should you use?

Is your pricing strategy profitable?

When pricing your product or service your pricing strategy should not be purely focused on profit. Ideally, you want your pricing to create a relationship (or lifetime value) that is far beyond the initial transaction.

Pricing strategies to consider:

  • Competition-Based Pricing Strategy.

  • Cost-Plus Pricing Strategy.

  • Dynamic Pricing Strategy.

  • Freemium Pricing Strategy.

  • High-Low Pricing Strategy.

  • Hourly Pricing Strategy.

  • Penetration Pricing Strategy.

  • Premium Pricing Strategy.

  • Project-Based Pricing Strategy.

  • Bundle Pricing Strategy.

  • Psychological Pricing Strategy.

Not sure how you should price your product or service?

Get in touch and start the process of aligning your pricing strategy with your value proposition and strategic plan.

Contact Us

Why focus on value over price?

If you want to compete it is easy to drop your prices, that doesn’t mean that you are creating value and have a competitive advantage.

Value Over Price

Even if you are the cheapest, strive to be the best value.

Lifetime Value Is King

Understand how you can increase the lifetime value of your customer.

Explain The Value

If you don’t communicate the value, your customer won’t benefit from it.

Focus On Your Pricing

Observe the market movements but don’t follow if it’s not right for you.

Time to take action.

Our approach to pricing strategy is to focus on the core needs of the business and the demands of the customer.

Strategic Planning

Do you need clarity on where your business is and where it is heading?

Communication Strategy

Are you able to clearly communicate the value of your service?

1035% Growth, With Running Socks.

Leveraging customer-centric strategies

If you think great customer service is too much effort check the Google Reviews for Ronhill New Zealand. In 2020 the brand was achieving a small income of $400 per month, well under what it should have been delivering.

Starting with the audience analysis we identified that we needed a low-cost purchase to engage them in this previously relatively unknown brand. With socks being a recurring purchase we knew we would be able to develop a strong lifetime value for those customers and leverage that sale to encourage them to try the running clothing. We focused our energy on brand building through amazing customer service.

The net result was turning a business with $16,000 revenue into $93,000 within 12 months, all because we created a strong customer focus early. For the full case study watch our FREE Sock Strategy Webinar here where we outline the 20 tactics we used to drive growth.

Sock Strategy - Ronhill New Zealand

Contact Waking Giants.

Do you want a digital marketing strategy that attracts potential customers?

Call +64 (0)9 302 0957

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Webinars.

It’s all well and good us telling you how good we are, but when it comes to building relationships it’s all about being open. We have a great webinar available along with our FREE 7 Day Trial of The Leadership Toolbox Community.

The Sock Strategy

How we grew an online sports brand by 1035% in 12 months.

The Leadership Toolbox

Try our online leadership and strategy community for FREE.