Sometimes it is just plain hard to figure out at what price you are going to sell your item or service.

You might need to do a comparison with your main competitors and find out at what price they are selling their items. In doing a comparison, you will want to fully compare the products or services and see if they have any features that make theirs worth more than yours, or ideally that yours is worth more.

Notice I said "worth more" and not "costs more".

As far as the competitor survey is concerned, you want to gather as much information as possible. Your not just selling a commodity, you are providing value in exchange for your clients trust and inevitably their money.

You want to make sure your product is priced fairly.

However, there is a certain price customers are willing to pay to have your product. If you can price your product based on the highest price your customers are willing to pay, then you have successfully priced your item.

If you have a strong desire to target your product to a specific audience, then you will need to price your product accordingly. Usually, you can get demographic information, which will give you a good idea on average incomes and what people can afford. You never want to price your product too high and make it unaffordable to your desired target market or you will fail in your sales.

Once your research is done and you have established a price and what is affordable for your target market, you will be able to effectively market the product or service. Be sure to know when to raise your prices also, if you have priced your item too low or there is a fluctuation in the market as a result of increased competition.

Here is something else to keep in mind: Once you start selling you're not done, you should establish a plan to keep track of the product, the market, the pricing and the sales. That way, it will assist you in creating a baseline and knowing if your product is priced too high or too low or if you need to tweak the offering or restate the benefits or features.

What does all this mean? Simply stated, price is something to consider carefully and... watched closely.

It could be the difference between good results and great results!

Author's Bio: 

David Mason is president of Mason Performance Development Inc., a Speaker, Trainer, Performance Development Coach and internationally best-selling author.

Find out more about David and how he can improve your results and be sure to take the complimentary Coaching Assessment at Small Business - Big Profits

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