December 16, 2020

Playing with prices

Do you raise your prices about as often as you have your roof re-shingled?

Lots of folks worry and research and deliberate a lot before setting a price.

Once they finally set one and the thing sells, they think, “I did it! I picked the right price!” and then never change it again.

But the reality is, there’s no one right price for anything.

For any given offering, there will be a price that is too low to make a profit, and a price that is too high for any buyer to accept it, but... usually there’s a significant delta between the two.

My rule of thumb for any new offering is to raise the price about 65% after you sell the first one. If you sell another one, do it again. Wash rinse repeat.

Eventually, you’ll get to a price where nobody is buying. At that point, you can dial it back down a little to get sales flowing again.

Here’s the thing...

These are your prices. They aren’t set in stone. You’re allowed to experiment.

Play with them and see what happens.

It’s fun :-)