Why Setting a Price Is Not Enough
It's not enough to just set a price. Pricing isn't a one time thing you do and then let it be. There's more to it than that. This is what we'll explore in this video when we look at reason number 5, why you might be struggling with pricing.
Setting a Price Isn't Enough
At times over my career people have looked at me oddly when I've told them I'm a pricing professional. A few even said, "Why would a company need that? Don't you just set a price and you're done?" I can see where they're coming from.
If price setting seems simple to you and you wonder "What's so difficult?", it's because you probably don't yet understand what goes into pricing. For many people price setting feels very challenging. People sometimes ask me "What's a pricing strategy?" It's not what they've done before. All that is fine. It means that there's something for you to learn.
The first important learning is to know that pricing is much more than just setting a price. The companies who do it better then the rest, do so by actively managing their prices. That entails a than just setting a price. It's also important to know there are people out there to help you do it better.
What Is Pricing?
What does that actually mean and what is pricing. Just like with sales or marketing there are many elements that make up pricing. Defining a pricing strategy. Setting the prices. Communicating the prices effectively. Managing prices over time. The more mature a company is with their pricing the more detailed and in depth they go to get the pricing right.
For a small business the point isn't to hit every aspect of pricing in the same way a large company would. It is about ensuring that you know what pricing is. You understand how it impacts your business. That you know what's needed for you to make the best decisions for you & your customers.
Pricing Is Continuous
The main point is that pricing is a continuous process as long as you have a business. In some businesses, like the travel industry it means your prices are changing daily, even hourly at times. For most business prices are changing or at least reviewed on some sort of yearly basis.
That means you're not done at any given moment there's always something more to do. It may be a light touch some days and a heavier effort other times. But it's always there on some level, influencing what you're doing in your business. I've always felt that pricing was fascinating. It's touched by every part of a business and it influences every aspect of your business. Keep that in mind and you're on the road to better pricing.
Wrapping It Up
Watch this short video to find out more. Learn the two main things that need to be done once you've set the price. Think about how you're doing those things, if you are. If you're not consider how you can start to make them part of what you do on a regular basis.
If you haven't seen the top 10 reasons you struggle with pricing go back and have a look here.
There's no time like the present to get on the right track. Find out more about ways you can WORK WITH ME.
Until next time...enjoy pricing!