There is a saying in business that if u settle for less than you deserve, you get even less than you settled for. Pricing the products/services is an art which is highly undervalued yet one of the core factors of making or breaking the business in the long term. Here are 5 reasons why one should not undermine the potential of their business:
- Competitive Pricing: One of the most common mistake new businesses make is to offer competitive pricing in the market when they launch their product. While it does offer an edge in the beginning, it does not hold sustainability in the long run. Factors like unfavourable market conditions, client issues, demand vs supply, and revenue generation. A long-term business plan works on consistency in the quality of the product and efficient client services.
- Value for Work: Underselling also means undervaluing your work ethics, over working, and eventually not delivering what was promised. While we assume that clients do want lower price, the cost cutting will come from working longer hours, underpaying the employees, or compromising on the quality of the product. None of which will result in sustaining a long-term business plan.
- Assessment: Rightly pricing the product/service is extremely crucial for any of the business-oriented ambitions. For budding entrepreneurs, it may simply be based on undercutting competitors’ price in the market. A well-researched assessment, market price differentiation and justifying higher costs through better product quality are few of the key factors in deriving the right price value.
- Niche: Identifying the niche area in the market gives an edge not only to the business but to the customer as well. It is important for new businesses to discover or create their niche and anything over and above should be expensed to the client.
- Sustainability: What comes easy goes easy in business. Every business plan has a vision, and it evolves from sustainable business ideas. The business should not feel like a race which never ends. Correct evaluation of products and services gives a buffer to sustain the business even in adverse circumstances.