Pricing is … Win-Win

Pricing is usually seen as that step in business where companies try to trick consumers out of their money.  Although in some circumstances this may be correct, I much prefer to think about the win-win aspects.  Your customer wins and you win.

Customer:  Someone only buys a product (or service) when they get more value than the price they have to pay.  This means whenever a purchase is made, whenever a customer exchanges cash for a product, the customer receives more value than it cost him or her.  Of course, otherwise they wouldn’t have made the purchase.

When you set a price for your product you must choose a price below your customers’ willingness to pay.  Otherwise they won’t purchase from you.

Company:  From your company’s perspective, you win when you charge more for your products than they cost.  That is the only way to make a profit and stay in business.

The customer wins with excess value.  Your company wins with profit margin.  It’s a win-win.  Pricing is such a great job.


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Mark Stiving, Ph.D. – Small Business Pricing Expert

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