One question that comes up frequently regards pricing strategy is how to know what price is the right price to charge for a given product or service. It is possible to have different pricing for different clients?
This comes up so frequently it might be helpful to focus on a specific pricing strategy. This is an important strategy because, as business people, we have to be careful with pricing things differently for different clients, especially if you’re dealing with a wide variety of clients.
In business, you may find you have small, or local-type businesses, and larger, more corporatize type businesses that you deal with. Considering the products or services you may be offering, the prices for those products and services may be different because of limits from the client you’re working with.
Catering to the needs of Different Clients
For example, a small, local business may be willing to invest as much as $10,000, because that is the rate they would pay. A larger corporate business may be willing to pay as much as $100,000 for the same product.
Knowing that you must price your products carefully, having an understanding of who your clients are and their expectations, as far as pricing is concerned, will go a long way in helping you set your prices properly.
The Different Life Cycles of your Clients
In an Information Marketing business, for example, there are typically different products and services offered at different levels, with a wide variety of price ranges. Take for instance, a relatively new business owner, with limited experience, might be willing to invest $6,000 for the year in a coaching program.
As that same client progresses in years of experience, and years in business, you may find they are willing to invest $40,000, 50,000 or even upwards of $85,000 or $100,000 in coaching programs that are designed for people who are further along in their businesses.
So, there’s your strategy from two different perspectives.
Think about where people are when they come to you and their ascension up your funnel.
Also, consider the pricing structure, from the perspective of what local, small business owners might pay, as opposed to what larger corporation may be willing to pay.
You may or may not have a business that contends in both of these areas at this time, but you certainly could somewhere down the line as your business changes and grows and expands or as you decide to stretch a little bit further.
As your business stretches and grows further and further you may be able to implement a different pricing strategy for different clients.