“How much should we charge for our products / services?” is a question that a lot of web analysts and online marketers ask themselves. But what they should ask themselves first is “Where do I position my business?”. It’s often overseen, but the way your online business is positioned will effect your customers evaluation process of your business.
The “beer on the beach” study by economist Richard Thaler revealed that sunbathers pay up to $2.65 for a beer from a high-end hotel, but only $1.50 if it comes from a local store.
Obviously you can do some trending with your web analytics solution, but you should never forget simple psychology and ask yourself the following questions when it comes to finding the right pricing:
1. What value does your service give to your customer?
2. Are you planning to offer your service as a low-end or premium-cost provider?
3. Would your customer buy your product/service even when he/she could get the exact same from someone else?
4. How much do competitors charge?
And certainly a lot more. Feel free to add!
