For the [target market description] that [needs the target market], [this product] [how it meets the need]. Unlike [the main competition], it's [the most important distinguishing feature].
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For example, the GPS statement for LivePlan, our business planning product, is: 'For a businessman starting a new company, launching new products, or looking for financing or partners, LivePlan is a program that produces professional business plans quickly and easily. Unlike [name removed], LivePlan creates a real business plan, with real insights - not just cookie cutter templates, blank fill templates. '
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Once you know what your overall positioning strategy is, you can move on to pricing.
Your positioning strategy is often a major driver of how your bids are priced. The price sends a very strong message to consumers and can be an important tool for communicating your situation to consumers. If you offer a premium product, the premium rate will deliver this message to consumers quickly.
Deciding on your price can seem like an art more than a science, but there are some basic rules that you must follow:
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Cover your costs. There are certainly exceptions to this, but for the most part, you should charge your customers more than it costs you to provide your product or service.
Pricing is the primary and secondary profit center. Your initial price may not be the primary profit center. For example, you can sell your product at cost or even lower, but you need a more profitable maintenance or support contract to keep up with the purchase.
Match the market price. Your prices need to keep up with consumer demand and expectations. The price is too high and you may not have clients. The price is very low, and people may undervalue your bid.
3 methods of pricing strategy
Cost-based pricing is a plus. You can set prices based on several factors. You can look at your costs and then mark up your offer from there. This is often called a 'cost plus' and can be effective for manufacturers where covering up the initial costs is crucial.
Market based pricing. Another way is to look at the current landscape of competitors and then price based on what the market expects. You can bid in the high or low market to establish your position.
Pricing value. Another way is to take a look at the 'value pricing' model where you can determine the price based on how much value you offer your customer. For example, if you are marketing garden care for busy professionals, you might save your clients one hour a week. If that hour is estimated at $ 50 an hour, then the service may charge $ 30 an hour.
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