The Key to Setting and Changing Your Prices
Join us at Entrepreneur magazine's Growth Conference, Dec. 15 in Long Beach, Calif. for a day of fresh ideas, business mentoring and networking. Register here for exclusive pricing, available only for a limited time.
Lots of business owners stress out about pricing. For good reason. Price your product too high and you can lose customers to your competitors. Too low and risk losing money.
No matter if you're setting your prices for the first time or changing your prices, sales expert and entrepreneur Grant Cardone says you need to keep one important thing in mind: value.
You don't need to have the lowest prices to be the best, he says. The value of your product or service needs to exceed the price you set. The idea, he says, is that the value provided transcends commodity and becomes a needed resource for your customers.
"If your value is additional, or if people use your product more, then you are lowest even if your prices are higher," Cardone says. "When value exceeds price, people will freakin' throw down money, throw it down more than once and tell their friends they love you."
For more insight on setting prices, watch the short video above.
Related: 3 Strategies for Raising Your Prices