Creating a pricing strategy that works for your brand and product is vital to ensuring you create happy customers and a healthy sales pipeline. Most organisations seem to implement cost-based pricing into their organisation which can be effective. However, using value-based pricing ensure your customers value their purchase and are as happy as this guy:
How would you implement value-based pricing?
Here at Sonician we love the idea of value-based pricing and we have actively engaged in using this strategy to price some of our products. However, to implement such a pricing system you firstly need to determine if you can sustain your business using Value-Based Pricing? If you already have high overheads then value-based pricing probably isn’t for you.
The next step is to determine what your customers are willing to pay for your products. This is one of the best ways to create value for your customers, creating a pricing strategy which is in tune with how much they value the services or products.
Determining how much your customers value your product is harder than it seems. To help you in the process of detailing how much your customers value your product you need to begin the process of creating an ideal customer; the ideal persona.
Now I understand all customers aren’t the same and you’re more than likely to have to create more than one ideal customer profile to fit your actual buyer base.
Once you have created your ideal customer profiles, the evaluating and surveying begins. It’s time to develop a survey that helps you determine how your ideal customers value your product. You can survey current customers, potential customers or people that fit your ideal customer profiles (what ever you do, make sure the people you survey match these profiles). Considering, you are taking up their time make sure you develop a short and concise survey and possibly even offer a reward for whoever completes the survey (because that’s what it’s all about, creating value!).
If this process has gone smoothly and the people you have surveyed match your ideal customer profiles as closely as possible, it’s then time to begin your data analysis. More than likely you may see certain trends emerge from your data.
This is where you can begin to develop your product packages and pricing, because the trends will emerge on which products your ‘ideal customer profiles’ will value the most. On top of using this pricing strategy to create value it also aids in the learning about your customer base. For some organisations it might come as a surprise on what their ideal customers actually value, your customers might value some products which you didn’t think to emphasize.
Outlined above is one method of introducing this pricing strategy, over the next few weeks we will be providing examples/templates on surveys and survey questions which you guys can put into practice yourselves. This can be the perfect time for actually reaching out because of the holiday season and your customer base may have time to complete your surveys. So make sure you watch this Space!!