Jane is starting a business. She’s done her market research, she knows who her ideal customer is, and she’s decided on the first product to offer.
There’s just one sticking point: how to charge for it. She has settled on a price, but it doesn’t feel quite right. She’s not alone in thinking this – when she mentioned the price to a few friends, they raised their eyebrows and told her she’s undercharging.
But she’s terrified of raising the price and putting people off. She thinks she should focus on quantity over profit so that she can break into the market.
You might relate to this – do you start to panic when someone asks you how much your product or costs? Do you immediately drop your price if a potential customer says they can’t afford it? Did you price your product so low that you’re barely breaking even or operating at a loss? Or worse yet, do you even know? (*My handy spreadsheet below can help you!)Continue Reading