Whether you’re on the business end of a company or you’re a consumer selecting a product or service, the money is at the core of what helps you make decisions.
Not only does pricing impact whether your customers are happy at the end of the day, but it also remains one of the most crucial factors in whether they remain your customers at all.
To settle on the right pricing of your product, you need two consider two things:
Budget: How much are your customers willing to pay?
Companies and individuals usually set a budget they’re willing to spend on a product.
Even the best product with the most convincing brand and messaging won’t move the needle if your pricing exceeds this budget.
A pricing survey will let you discover how well your product fits within most of your clients’ budgets.
Value: How well does the pricing correspond with the perceived value of your product?
In markets with fierce competition, it’s crucial to maintain the right price-to-value ratio.
Simply speaking, the pricing needs to reflect the product’s value accurately. You cannot charge so much that your audience won’t be able to justify the purchase. But if you undercharge, the perceived value of your product might drop. You don’t want your prospect to be thinking that your product is too cheap to be any good.
How much are you charging for a product or service with the same features your competitors offer? Which of your features are unique and make you stand out? Are they enough to justify steeper prices? Is your competition offering special deals or packages that you’re not offering?
These are all questions your customer will ask themselves before purchasing your product. A pricing survey will let you find the answers to them.
Finding out how you fit your customers’ budget and how your customers perceive your price-to-value ratio will help you determine if your pricing is optimal and if your customers would stick with you even if you change the price.