I recall launching my first product, a batch of freshly baked cupcakes, at a local market in Lagos. I priced them at ₦50 each, thinking I was offering a great deal. However, I soon realized that I had made a costly mistake.
I had underestimated the value of my product and priced it too low. This mistake cost me thousands of Naira in potential revenue. This experience taught me a valuable lesson: the importance of understanding the value proposition of your product or service.
Many entrepreneurs and business owners make the same mistake, leaving money on the table due to underpricing or undervaluing their offerings.
According to Jay Abraham, a renowned business consultant, “The goal of a successful business is to create a customer, not just a sale.” This quote resonates with me because it highlights the importance of understanding the value you bring to your customers.
To avoid making the same mistake, it’s essential to conduct thorough market research, understand your target audience’s needs and pain points, and develop a unique value proposition that sets you apart from the competition.
Additionally, it’s crucial to focus on creating a customer-centric business model that prioritizes building long-term relationships with your customers. This approach will enable you to increase customer loyalty, retention, and ultimately, revenue.
Don’t make the same mistake I did. Take the time to understand the true value of your product or service, and price it accordingly. By doing so, you’ll unlock the potential for greater revenue and growth.
However, be cautious: underpricing or overpricing your product can have severe consequences on your business.
So, what’s the right pricing strategy for your business? It’s essential to experiment, gather feedback from your customers, and continually adjust your pricing strategy to ensure it aligns with the value you provide.
Remember, pricing is a delicate balance between earning revenue and providing value to your customers. By being strategic and informed in your pricing approach, you’ll be able to avoid common pitfalls and unlock the secrets to sustainable growth and success.
featured image by Nubia Navarro (nubikini)
