You should not be afraid to talk to your customers about pricing. It’s not a secret you’re going to charge them at some point, and acting like it is a secret is doing you and the customer a disservice because they need you to stay in business if they’re going to get long-term value out of the business.
The other reason it’s so important is that the ONLY data source that’s going to tell you what your value is is your customer. No one else, no formula, no workaround, is going to get you to this answer, so go head first and ask them.” - Patrick Campbell.

With that said, can you really ask a customer directly what would you like to pay for this product/service?
While many approaches help you arrive at the right price, one of the easier methodologies to apply is the Van Westendorp Price Sensitivity Meter, which revolves around 4 key questions to arrive at the right price.

1. At what price would you consider the product/service to be priced so low that you feel that the quality can’t be very good?
2. At what price would you consider this product/service to be a bargain—a great buy for the money?
3. At what price would you say this product/service is starting to get expensive—it’s not out of the question, but you’d have to give some thought to buying it?
4. At what price would you consider the product/service to be so expensive that you would not consider buying it?

This strategy works well during new product development to get you the Optimal Price point. The bottom line is don’t guess pricing, figure out the right way to arrive at the same.

#marketing #pricingstrategies