How confident are you and your sales team that your product is worth its price?
The answer to that one question is a fantastic predictor of how much you discount your product. People that don’t believe their product is worth it have a very hard time winning at high prices. Instead, they discount to a “reasonable” price.
A highly profitable attitude and belief is that my product is so worth its price that I feel sorry for people who don’t buy it. If they bought from the competition, they didn’t make the best decision because I failed to communicate the value well enough.
This isn’t a game. This is truth. Are your products that good? Are they that much better than your competitors? If you don’t believe it, you are probably discounting too much.
If your products aren’t that good, then that is where you should focus. Listen to your market. Only add new features that buyers would pay for and users would use. Be better than your competitors. When you add the right features long enough, you will gain that confidence.
In fact, you will hear your own users tell you stories that strengthen your confidence. If you’re not confident, work on your product first. Have price in your mind and in your research, but realize your products have to add value before anyone will buy them.