Discover Invoicely Pricing for Product Quality that Elevates Your Business

Invoicely pricing for Product quality

today I'm speaking to Jenny Miller who's teaches Dillon entrepreneurship at Warwick business school who is also one of the leading UK experts in pricing so Jenny so what's your approach to pricing I love to demystify pricing and help business leaders identify what needs to be done to ensure their pricing is being used to full effect businesses need clarity around when and how to change prices how to leverage their data to optimize those prices on how to use pricing to support their plans for growth so it's all about giving business leaders a peace of mind that their pricing is working as hard as they are so why do you think that entrepreneurs and startups find it so challenging to you know find the right price the pressures really on when it comes to setting prices for a brand new products or services there are no hard and fast rules to follow as you try to anticipate what potential customers may be willing to pay and putting a figure on that product that you've put blood sweat and tears into creating takes many entrepreneurs out of their comfort zone there are so many pricing techniques to choose from that can be quite overwhelming and getting your pricing right is inherently linked to the success of your startup so a lot is at stake I can see that so when is the right timing to you know to think about pricing it's always the right time pricing should be front of mind from the moment the business idea starts to take shape when launching a new venture whether that's into a crowded mature market or creating an entirely new market pricing is a significant lever in your armory to be deployed as effectively as possible and I think how you price your offering speaks volumes about your brand your target customers what you want them to do so effective pricing can supercharge your business growth but under optimized or neglected pricing can destroy startups chances of success I think it's also important to remember that a new company's pricing should evolve and mature as the business itself evolves and matures it doesn't need to be set in stone from the outset but revisited frequently and managed alongside other key levers in the business so given how important pricing is what would be the key advice you would give to entrepreneurs many entrepreneurs have admitted to me that they set prices by kind of taking a finger in the air approach and effectively guessing what their prices should be so I certainly don't recommend that others look at their cost base and how they anticipate that changing over time they might look too competitive for a benchmark in pricing and or they might run suggested price points past trusted advisors or potential customers and these are all really advisable approaches but there are three key considerations that I feel are often overlooked so the first is does your proposed pricing align with your brand so if you're pitching your service it's a really premium offering aggressive price discounting will just feel counterintuitive to your audience equally rigid pricing structures that give customers little or no can chase will seem at odds to brand attributes around flexibility and customer empowerment so I would say ensure your pricing tells the same story as your brand second consideration is does your pricing support your primary business goals for the business for the next 12 to 18 months so that primary business goal could be rapid expansion of your user base or stabilizing revenues or encouraging your customers to interact more frequently but whatever it is think about the most important thing that you want customers to do to support that goal and then ensure that your pricing incentivizes them ingly thirdly does your proposed pricing align with what your customers value the most our perception to pay is rooted in the perception of value that we receive in exchange for money what customers value the most and what it cost most to deliver may be very different so ensure that your pricing and the Associated narrative revolves around those drivers of perceived value so it's only when startups pricing aligns with these three things it's a brand primary business goal and what customers value the most kind of entrepreneur feel truly confident that their pricing is pulling its weight and can work hard enough for their business Thank You Jenny that was valuable advice for our coming to the entrepreneurs and startups thank you you