I do this a lot, and it's not as scary as it might seem. Often the majority say the product is worth more than what they're paying for it. This is a g

Are You Paid What You're Worth? Use These 4 Rules to Always Make Sure Your Product Is Priced to Maximize Profits | Inc.com

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2021-08-19 12:00:08

I do this a lot, and it's not as scary as it might seem. Often the majority say the product is worth more than what they're paying for it. This is a good problem to have, right?

Well, yes and no. One on hand, it proves my product offers a lot of value. But it also shows that I'm leaving money on the table.

Undervaluing a product is a common pricing mistake. Once I understood why I kept making that mistake, I was able to break the pattern and make the shift to scale the company.

So let's talk about why we entrepreneurs constantly sell ourselves--and our products--short, using the four pricing rules I run all new entrepreneurs through.

Establishing a price model and setting proper pricing is one of the most difficult parts of developing a new product. And when it comes to difficult business concepts, entrepreneurs tend to learn a lot of those concepts by osmosis. They analyze how established companies do things, and then they copy those things.

So when it comes to pricing a new product, one of the mistakes I see a lot--especially with early startups--is setting their initial price based on their competition's pricing.