I have proposed a topic, “Best Practices in Pricing”, for ProductCamp Austin. If you’ve never been or ever heard of it, it’s a great day of free business information for product managers, business owners, and those thinking of starting a business. Attendees select the topics the day of the event so they get to hear what they are most interested in that day.
Although the session has sold out, there is a waiting list. I encourage you to get on it. For more information on Austin Product Camp, go to http://productcampaustin.org. For information on my session on Pricing and the 39 other great sessions, go to http://bit.ly/e6chc0.
If you can’t come or can’t wait, I thought I would provide some things to think about to sharpen your pricing skills. At least this will get people to reconsider their pricing strategy — hopefully they have one.
3 Wrong Ways to Price
- Blindly following the pricing of your competitors – they may or may not be right or right for you.
- Not knowing your “true total costs” before you price.
- Not including profit, contingency & hassle-factor in your price structure.
3 Right Ways to Price
- Match price to preferred positioning.
- Choose a price that does not exceed “flinch point” of your desired Platinum Profile customer. (See my earlier post on Platinum Profile customers at http://bit.ly/arxFwB
- Use value- based pricing rather than just cost-based pricing.
If I do the presentation, I will be talking more about best practices that I use and giving some examples of pricing problems I have addressed with clients. It is a Town Hall session so I will also be asking for attendees examples, questions and best practices. My goal is for us to learn from each other. I hope you’ll be there to share your experiences.
Do you have pricing issues, questions or examples of good or bad pricing practices? I want to hear from you. You don’t have to wait until Saturday.
If you are going to ProductCamp, I hope you’ll vote for my session. I really want to hear what experiences others have with pricing.