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When starting a business, most entrepreneurs usually find very hard to know how to value their products or services.
To be honest, it was also difficult for me to find the right value for my products and services for my web design and hosting business.
I struggled to find a balance on how I was going to set my prices for my business. This was because I didn’t have so much confidence in my products/services. It is crucial for any entrepreneur to have confidence in their product/services when starting your business.
After some few months of struggling to find the right balance, I came to learnt that all pricing of any products/services are fully dependent on the value itself. If your product/service doesn’t have value to your customer then you should not sell it to the customer. No customer will buy a product which is valueless.
Remember, if you can’t buy your own product/service, then don’t expect anyone to buy it.
Another thing which helped me was that i took into consideration the time, efforts, costs incurred to come up with my products/services. Don’t be afraid to charge what your product/service is truly worth.
If you have a good product, don’t be afraid to charge for it
Some of the entrepreneurs I have engaged with don’t value their time or rather they don’t factor it to the pricing. This is something that most business suffer from especially business that offer intellectual property oriented services like photographers, web designing, logo designing. You need to put a rate on your time. If you don’t value your time no one will! Remember, if you can’t buy your own product/service, then don’t expect anyone to buy it.
In order to find out the price for your product/service, ask yourself, how much will you buy your own product/service if you were to buy it from yourself!
Very informative. As an entrepreneur offering common services also consider competitor rates to ensure that your services aren’t overpriced in the market.
Thanks Muiru, its true that we need to be aware of our competitors pricing but most importantly we need to out do the competitors in offering valuable products that will give you competitive advantage
“Remember, if you can’t buy your own product/service, then don’t expect anyone to buy it.” Well said, if you cannot sell your product to yourself, go back to the drawing board.
You remember when we were starting Infokennews.blogspot.com (not sure if it still exists) as a business. We had an uphill tasks in setting our prices cause we didn’t even know who we were trying to capture and what value we were adding to them in order to set the prices for our product. Currently, we have truly evolved from those times, Well done for transforming that idea to be now a money making Technology blog business that is Techweez.com.