Create a Profitable Pricing Strategy Masterclass | Free Udemy Course

The price you set for your product or service broadcasts its value to potential customers. This video provides an overview of the many variables that impact the pricing, pricing models, and using competitive analysis to achieve competitive pricing and healthy margins.

You would be amazed at how much information you communicate to a consumer with your price.  Let's explore what a consumer (or business buyer) hears when they see your price.  

Coming up with your pricing strategy is not easy, but we will guide you through the process and that process starts with scenario-based pricing.

There are three primary types of pricing strategies you can use for your business.  This lesson will help you in determining the ideal pricing strategy for your business.  

Investors will be very interested in your pricing strategy. We will review exactly what they look for so you can consider incorporating that into your pricing strategy.  

There is nothing more important than to test your pricing strategy with actual buyers.  We will examine exactly how to do that.  

How will you price your product? Gain an understanding of three key pricing models: Cost-based pricing, market-based pricing, and value-based pricing. This overview includes a look at popular products and service's pricing models—yogurt, dry cleaning, nutrition bars, furniture, house cleaning, nail salons, hotels, and more.

To get you warmed up, here is a quick exercise that presents a handful of well known companies and asks you to guess their pricing model.  

Let’s take a look a bunch of examples of pricing models from companies that you will be familiar with.  

Don’t make the same mistake so many other entrepreneurs do when creating their pricing model.  We will give you the common mistakes to avoid. 

Here is a framework for you to follow when creating your pricing model.  We have broken this down into 5 easy steps to follow.  

The best place to start when trying to figure out your pricing model is researching what is already out there. Check out your competition and see what models they are using.  Will you try and differentiate by using a different pricing model? Or will you be more successful using a model customer already are used to?  

Gain an understanding of how margins work so that you can choose the right price for your product or service. Having a justified pricing strategy will help you avoid common mistakes such as guessing at price-setting, skipping competitive pricing research, leaving money on the table with a too-low price, or misunderstanding the whole value of what you're offering. Learn how supply and demand for your product or service impact price, how to quantify the level of value you're delivering (don't under-value it!), and how market forces impact your pricing.

Margins can vary widely industry by industry. Here we give you a snapshot of the most popular industries and the expecting margins for each.  

Learn how your pricing influencers can impact your overall pricing strategy.

Learn how demand for your product can impact your pricing strategy.  We will provide you key strategies to use when examining consumer demand. 

Give careful consideration to the eight pricing influences explored in this video: Competition, demand, uniqueness, scarcity, quality, margin, being first/market saturation, and the customer value-perception. For each of these pricing influences, Ken explores tactics that you can apply to your business, supporting you in setting the most appropriate price for your product or service—without leaving money on the table. If you don't already know what a Cabana Combo is, you soon will!

Learn how being first to market can impact your pricing strategy.  We will provide you with key strategies you can use. 

Learn how uniqueness of your product or service can impact your pricing strategy.  We will provide you with some key strategies you can use.  

Learn how scarcity of your product or service can impact your pricing strategy.  We will provide some key strategies for you to consider. 

Learn how quality of your product or service can impact your pricing strategy.  We will provide some key strategies for you to consider.

Learn how your product or service margin will impact your pricing strategy. We will provide some key strategies for you to consider.  

Learn how customers' perception of the value of your product or service will impact your pricing strategy.  We will provide some key strategies for you to consider.  

The next step in the process is to score your pricing influencers so you can determine which are most important for you to consider. 

Let's take a look at the three different kinds of pricing models.  Here are the three different pricing models:

-  Cost based pricing

-  Market based pricing

-  Value based pricing

Let's take a look at the pros and cons of cost-based pricing model.  Depending on your product or services and your industry, this might be the ideal one for your business. 

Let's take a look at the pros and cons of market-based pricing model.  Depending on your product or services and your industry, this might be the ideal one for your business. 

Let's take a look at the pros and cons of value-based pricing model.  Depending on your product or services and your industry, this might be the ideal one for your business. 

Now it is time to choose the optimal pricing model for your business.  We will guide you through the process. 

Heads-up on some common mistakes entrepreneurs make in developing their pricing strategy.

This case study illustrates all the steps necessary in creating a profitable pricing strategy for your business not just the pricing model used.  While you are welcome to watch it, not all the concepts illustrated in the case study were covered in this course.