Is your business steady with a core group of customers and a solid inflow of cash? Great, here’s where the real fun can start.
Most businesses start out small with one, maybe two, products. With so few products there is really only room for a single price range, and the only way to ever earn more or build any type of real, sustainable wealth is to continually grow the customer base. Of course, bringing in new customers at a steady rate is often part of the business plan, but can it really make up for no variety in pricing?
Not convinced? Let’s take a look at three common price ranges that every business should be using.
1.The Low Range: Keep in mind that low ≠ cheap. What kind of products should be listed in the low price range? Consider these the kind of products that can be manufactured or created at relatively low costs that customers need or want, but might not be willing to invest too much to purchase them. The final goal of a low price range product should always be to encourage your customers to consider making future purchases.
2.The Medium Range: Customers expect more from products in this category, so make sure the value is appropriate. Personalized services — including web content or an online course — tend to fit well here.
3.The High Range: High range products and services are not just tossed in as a way to make a quick buck. These types of products should have real, substantial value that is unique and difficult to find elsewhere. Some business owners use their high price range to offer customizable products to customers, while others reserve this area of their market for personal service.
Products in the high price range might be out of reach for some individuals in a customer base, but it is important to understand that this is normal. It can be tempting to simply lower the price of products to rake in a few extra sales, but there is little to be gained from giving away something of true worth and value.
As business owners expand their companies and begin to incorporate new products and lines, the real value of each product and how each product contributes to the company and benefits the customers should be carefully evaluated.