MBA2276 Q&A Wednesday: How do I price my first product?
Setting your first price for your first product can feel…scary. But most new entrepreneurs err on the wrong side of the equation, undervaluing their product or service in a way that can backfire — badly.
It’s Q&A Wednesday, and we’ve got a listener with a new software product. But what should it cost?
A common misconception is that the lowest price will attract the most customers. However, this strategy isn’t sustainable in the long run, because it limits the revenue you can invest in making your product even more awesome.
The question isn’t “What are consumers willing to part with?” It’s “How valuable are the benefits my product provides?” Put a number on that, and don’t sell yourself (or your company) short!
Ultimately, setting the right price requires some research and analysis of how much money, time, and effort you’re saving the customer. But just as importantly, it requires the right attitude. Don’t be afraid to charge what you’re worth!
Hear our advice, and consider it next time you look at your own price tags. Click Play!
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