Cheeper isn’t always cheerful
At some point in your life as a Home Business Wannabe you are going to have to decide how you are going to tempt customers to buy your product or service.
It’s tempting to undercut your competition and assume the customers will look for the bargain. This may works sometimes, but it is not a guarantee. Will your customers be willing to pay that little bit more for a better product? Remember, it is a commonly held belief that you get what you pay for - will people see your product as inferior simply because it is cheaper? If you are trying to win business simply by undercutting your competition you are going to be in big trouble when the competition lower their prices. What are you going to do then? Make further reductions? Sooner or later you will be cornered out of the market because you can no longer compete on price.
Instead of focusing on lowering your prices, focus on giving your customers more value for their money. Give them something unique, give them something your competitors are not.
Think carefully when your are pricing your product or service. Think about how the price point will reflect on it - is it an expensive luxury or cheap and cheerful? Know your competitors, know their price-points and decide carefully where you are going to fit in. How much can your target customer afford to spend? Are you aiming for the top of their spending budget, in the middle, or the bargain basement. And remember: you get what you pay for!
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