New business don’t know whether to charge low to attract customers or high to look premium. How to decide?
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Hey David, Start by calculating your costs (materials, time, overhead) and decide the minimum margin you need to survive. Then research what competitors charge for similar value. If you’re new, avoid racing to the bottom; instead, anchor slightly below or at market rate and emphasize quality or service. Test two or three price points with small groups and watch conversion, not just clicks.
Think in terms of value, not hours. Ask: “What outcome does the customer get, and how much is that worth to them?” Use value‑based pricing where possible (e.g., charging more if you save time or increase revenue). Launch with a clear, simple price structure, then raise prices gradually as you prove results and collect testimonials. Early customers often accept modest increases if they see real value.