Small Business Trends Radio

Uncover Hidden Profits Through Better Pricing

Rafi Mohammed on Uncovering Hidden Profits Through Better Pricing

Each day, many of us are in the trenches busily creating, innovating, and marketing our entrepreneurial ideas. There’s so much to do and so much to focus on. As a result, things tend to slip through the cracks and where most companies and owners drop the ball is pricing. Lack of focus results in “quick fix” prices created by marking up costs, matching competitors, and following the “that’s the way we always do it” frame of logic.

Rafi Mohammed Ph.D., Founder of Pricing For Profit and author of The Art of Pricing, is our featured guest in this Episode of The Small Business Trends Radio. Rafi shows you how to create and implement the right pricing strategies for your products and services.

Here’s a sampling from the show:

  • Pricing — is the way that you’re compensated for the work and the value that you create for your customers and a purchase is the customers way of saying, “We’ve looked everywhere and the best value came from you.”
  • It’s all about options — let customers self-select which pricing option is best for them and they will always say “yes” by allowing them to choose. It’s a simple pricing strategy that can add a lot of money to your bottom line. Capture the value of your product or service and always remember that different customers have different ideas of value.
  • Set a value based price — by capturing premiums from those willing to pay a bit more. Offer them additional benefits for their money and offer those only willing to pay less a price reduction. That way, those willing to pay more get a bit more for their money and those who may not have purchased otherwise, are enticed to do so. This is an example of different value pricing for the same type of product or service.

With Rafi’s pricing for profit and growth insights, you’ll be ready to start uncovering your hidden profits immediately after the show. To do so, click the red and yellow player below and listen to his full interview.

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3 Responses to “Uncover Hidden Profits Through Better Pricing”

  1. Amanda Says:

    Pricing is one of the most difficult parts of business for me. I’m always afraid of charging too much or too little. Rafi offered a lot of helpful advice that I can use in the future.

  2. Chris Says:

    I like his suggestion of a flat fee regarding certain services. I think consumers feel much more secure when they know exactly what the end cost is going to be. Especially now, during a time when everyone is minding their P’s and Q’s and cutting back. His incremental pricing suggestion is one that I, myself, really appreciate when shopping for services. I get exactly what I’m willing to pay for and I tend to expect that option more often now, too. I’m always disappointed when prices are set in stone and the products or services simply aren’t even an option for me.

  3. Martin Lindeskog Says:

    It is pretty hard to set the right price. Thanks for the lesson!

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