Tuesday, April 18, 2006

 

Putting a price tag on it

Here are some useful tips from Eric Sink on the thorny subject of pricing. He covers, in a very accessible style, issues such as market positioning, understanding customer value, costing and high-volume vs low-volume considerations. He has some warnings about pricing something too low or creating temporary prices. I particularly like the simple 3 tier pricing model outlined: basic, regular and premium.

There's a great line in the entry: "If nobody is complaining about your price, then it is probably too low. The trick is to tune your pricing until the volume of the whining is just right."

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