Price Strategy Consulting Services Detroit MI

You can sell anything for nothing. As an entrepreneur, your challenge is to figure out what you need to charge - and what the market will bear - in setting the price of your products and services.

Price too high, and you can stall your business right out of the gate. Price too low, and you may begin with unexpected sales volume - but it can hurt you in the longer term. Throw in the varying influences of different types of sales outlets while you parry the pricing strategies and schemes of competitors, and pricing can become as complex as it is important.

So step back a bit, and consider these ideas for working through your pricing strategy and decisions.

Make pricing a major consideration of your business model

Pricing is an important component of cash flow and profitability, as well as marketing and even branding – so give it considerable thought. In general, you want to price your products and services high enough that you don’t leave money on the table, but low enough that you’re not losing potential customers. For startups selling premium goods, premium pricing must prevail. If you’re selling what’s considered a commodity, you’ll have to figure out how to make your business model work on minimal prices.

Billy Lowe, for example, is a hair stylist for TV stars such as Ellen DeGeneres and Debra Messing as well as the moneyed elite of Beverly Hills, Calif., and he’s unapologetic for his premium pricing.

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