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Re: High price or low?
Hi Dien
Thanks for the comments. As for competition, I don't believe there is any. In five years of searching I think we would have found it! The closest we found was a web site with about 100 URL's. Thanks Philip > Hi Philip, > My opinion on pricing has gradually changed > over time.... > Two common business strategies are: > * High price, low volume > * Low price, high volume > I think you should decide which type of > business you would prefer: > * A business where people pay MORE, but you > have fewer customers to deal with (and they > end up getting better service), or... > * A business where people pay less, but you > have more customers to deal with, who may > end up getting worse service (since you're > spreading yourself more thinly).... > I like the first option better. I'd prefer > to charge more, but offer more in return for > it (to ensure I have happy customers). > I think the high price, low volume type of > business is probably easier for the > "small guy or gal" to succeed in > as well. However, it depends on your > product.... I think the more unique your > product is - as long as that uniqueness is > beneficial to the customer in some way - the > easier it would be to succeed this way. If > there are many others selling something > similar to what you have, but they're > selling it cheaper, then it's probably > harder to survive.... > If I were you, I would set a > "high" price, but then also make > sure that when people buy it, they feel that > they are getting value. Add more products or > extra service to what you offer to ensure > that.... > Well, there's my two cents.... I'm > interested in knowing what others think > about this topic too. (Feel free to disagree > with me.) > - Dien Rice > P.S. Like many others here, I've learned > from Bill Myers. He seems to be a big > believer in the "high price, low > volume" type of model... > One thing he seems to do is that the higher > the price is which he charges for a product, > the better the service is which the customer > gets as part of the "package". > For example, he's selling some expensive > software nowadays - Membergate. It was > $30,000 (I'm not sure if it's still the same > price). But for their money, in addition to > the software, a company also got > installation, and training for their staff > on how to use it, plus one year of free > support (if I remember right). > So, while companies did pay quite a price > for the software, in reality they also got a > lot in return. These companies felt that the > software plus these extra additions was well > worth the $30,000 they paid. The goal is to > have happy customers, and make a profit too. |
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