It’s important to know your target market. But guess what? They’re not you! Remember that you would never buy what you’re selling because you already know how to make it. Your target market is happy to pay you for your expertise! Whether you’re selling products or services, it’s important to remember that your target market can’t do what you do. They want to pay you for your time and skill!
Pricing Your Products For Your Target Market
One strong indicator that you’ve got your target market wrong is having prices that are too low. You (wrongly) assume that because you wouldn’t pay that much for your products, no one else will either. Remember that to a lot of people, time is money. You have a skill that they don’t have. Rather than learning themselves how to do what you do, they’re more than willing to just purchase your product.
I once heard a great tip that if your products are flying off the shelves, they’re probably under-priced. Don’t miss out on potential income because you’re underpricing!
Pricing Your Services For Your Target Market
Similarly, when pricing services, remember that other people will pay more for this service than you would. You have a skill they don’t. The time it would take for them to learn this skill would cost far more than just paying you to do it.
It’s generally best to price services based on perceived value to the client. Will your service increase the value of their house or business? That’s worth so much more than the simple calculation of time spent and materials cost.