King bell
VIP Contributor
As a business owner, you are faced with a difficult question. Many of your potential customers, who have never created a product before, will come to you for advice about what to charge for their products. But because you don't have any previous experience in this area, it's hard to know how much is "too little," "too much," or just the right amount.
To help all business owners make better decisions on how much to charge for their products, here are some important factors that should be considered when pricing your goods and services:
What type of product would my customer benefit from?
It depends on what the desired outcome is and what the customer specifically needs most; websites work differently than apps and books.
What is my customer willing to pay for your product?
There are two main things to consider when you're deciding how much to charge for your products: Ad hoc pricing and subscription-based pricing. Ad hoc pricing means you set a flat price that covers the costs of producing and delivering the product, whether it's a physical book or digital file. Whereas subscription-based pricing means that you make a certain amount of money off of each sale, whether it's a physical book or digital file.
Which type of business should I run?
It depends on what kind of products you're selling and who your audience is. Your business type will determine the pricing structure you use. For example, if you're a digital service or an e-commerce store, you might want to use subscription-based pricing. If you're an artisan who makes things like pottery or jewelry, you might decide to use ad hoc pricing.
Where do I sell my products?
Most of your potential customers are not interested in buying products directly from your physical shop; they have other sources for these products. But many of your potential customers would be interested in buying from your shop if you offered different shipping options and worked with these same people to create and deliver their orders. Ad hoc pricing is most appropriate for selling products online or using online stores like Etsy (or Shopify).
To help all business owners make better decisions on how much to charge for their products, here are some important factors that should be considered when pricing your goods and services:
What type of product would my customer benefit from?
It depends on what the desired outcome is and what the customer specifically needs most; websites work differently than apps and books.
What is my customer willing to pay for your product?
There are two main things to consider when you're deciding how much to charge for your products: Ad hoc pricing and subscription-based pricing. Ad hoc pricing means you set a flat price that covers the costs of producing and delivering the product, whether it's a physical book or digital file. Whereas subscription-based pricing means that you make a certain amount of money off of each sale, whether it's a physical book or digital file.
Which type of business should I run?
It depends on what kind of products you're selling and who your audience is. Your business type will determine the pricing structure you use. For example, if you're a digital service or an e-commerce store, you might want to use subscription-based pricing. If you're an artisan who makes things like pottery or jewelry, you might decide to use ad hoc pricing.
Where do I sell my products?
Most of your potential customers are not interested in buying products directly from your physical shop; they have other sources for these products. But many of your potential customers would be interested in buying from your shop if you offered different shipping options and worked with these same people to create and deliver their orders. Ad hoc pricing is most appropriate for selling products online or using online stores like Etsy (or Shopify).
