Pricing your products may be one of the most daunting tasks you face as an entrepreneur. That being said, there are a lot of resources online you can use to get started.

Challenges of pricing

You want to cover the production costs and make a profit. But, at the same time, you want your prices to be competitive.

If you price your products at a low level, you might make more sales in the beginning, but there is a risk that if you want to raise the prices later, you’ll lose customers.

You could think of your company as a luxury brand and ask for a lot of money for your products. Still, you need to honestly evaluate whether your products really are good enough for that or not.

If you give discounts too easily every time someone asks for them, you’ll end up giving discounts every time customers like these return.

A while ago, I wrote about prices that are always discounted and how they are a red flag for me -and I’m not the only one.

In addition, pricing strategies are not typically shared with rivals.

And the list goes on and on.

No matter how difficult pricing may be, don’t outsource it to customers

I’ve also been in a situation where I was using a service that I was satisfied with, but it wasn’t an original one. At some point, there was uncertainty whether the company would keep offering this service because it had become unprofitable for them. So, they asked the customers how much they would be willing to pay for the service in the future. As a customer, I was not at all happy with that.

If your product is not making you money, you can ask for feedback and reconsider (for example) your prices after that. But don’t tell your customers that you need to make more money, and then ask what the highest price is they would be willing to pay for your product. It’s not the customer’s job. If your product is not making enough money, you might want to consider pivoting your business.

Therefore, you need to take the time to study different strategies and decide which is the best for your company.

Where to start learning to price?

There are a couple of options you can start with. First of all, you can read, for example, these three articles:

The other option is to find online courses on this topic. You can check out, e.g., courses on:

There are multiple free/cheap courses on these websites.

I’m pretty sure that with these resources, you’ll be able to tackle the dreaded task of pricing your products.

And as always, have fun learning!