Pricing is all about confidence

While technically pricing is a marketing issue - let's not get into that. Pricing more often than not comes up when looking at the finances of the business.

 

It's inevitable that when it comes to discussing revenue and profit the question around pricing comes up. Am I charging enough, is my pricing structure the best it can be, and what am I missing out on.

While there are some pricing structure issues that can become a little complicated in some businesses, to get pricing right it always comes down to your confidence in order to be able to charge more. That's not to say you can charge whatever you like if you just wanted to use a metaphorical pricing dartboard and go with that, but what it means is that if you are confident in a price then that's what you should go with.

So the corollary of that is to increase your prices, you need to do the work internally on the business to ensure that you are confident in the price being paid, which means you having confidence in there being a value equation that you can clearly explain to people pretty much. This like all business takes lots of work because you need to be totally clear about what you are selling, how you are delivering that and what your ultimate goals are as well.

As you work through all of these issues, which to a certain extent never goes away your pricing strategy will improve and your business too.