Accountancy & Bookkeeping

Tip of the Month: Know your worth

By Phil Butler

21/10/2020

Pricing strategy is one of the most difficult aspects of running a business. While traditional models such as cost-based pricing are still prevalent in some industries, they are quickly becoming old fashioned. Smaller businesses, who offer bespoke services or products, should consider moving away from these types of models in favour of a value-based pricing strategy.

A value-based strategy places less emphasis on what it costs you, the seller, to create your product or service, and more on knowing its worth to the customer. You need to have an open dialogue with your customers to establish exactly what they want from you or your product. This strategy favours businesses that offer added benefits or that have unique selling points that competitor business don’t have.

If you would like to talk more about pricing strategy and which is right for your business, please get in touch with our team.