Good morning, everyone! ☀️ It’s Thursday, and today over a coffee I want to talk about something that often holds entrepreneurs back: raising your prices 💰✨
👩💻 When I first started my journey, I was overly conservative, worried that people wouldn’t choose me if my prices were too high. And It was certainly a mistake ❗ Ironically, when I finally adjusted my pricing (something that took me longer to realise than I would have liked) to a more reasonable level, I started selling more! 💷🧐
As newcomers in the market, we often weigh our options carefully to determine the best strategy. But what’s not effective is getting stuck HALFWAY! 🙅♀️🚫 I found myself in this position: not too cheap, yet not competitively priced either❗
1️⃣ Let’s talk about the psychology behind pricing first: Consumers often equate higher prices with higher quality, which can create a perception of value 🤩 By positioning your products at a price point that reflects their true worth, you not only improve your profit margins but also build consumer trust and brand loyalty.
2️⃣ The cost of the product is just one piece of the puzzle: There's something I didn't realise until at least six months into my business journey. Over time, you come to understand that there are many associated costs involved 👉 including preparation, shipping, taxes, packaging, client acquisition costs, the typical 10% discount that first-time buyers expect, and more. Keeping your margins tight will only hinder your growth. And, if you're aiming to develop the B2B segment, you'll need to ensure better margins.
🫣 There's nothing worse than realising your margins are too small for any movement you want to make. Don’t be afraid to increase your prices, or your costs will eat you alive❗
Have you had a similar experience with your pricing strategy? 🧐 I’d love to hear your thoughts!
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