From the course: Pricing Strategy Explained
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The five key steps to pricing
From the course: Pricing Strategy Explained
The five key steps to pricing
- So the pricing strategy framework has five steps to follow, and we're going to walk you through each one of these steps. The first step is researching your competition. This is going to actually allow you to establish a range for low to high range of your pricing strategy and it's a good exercise to do. It doesn't mean that you have to fall within that range, it just means that it's giving you guidance as to where you need to go. The second step is know your margins. This is the most important step that you can possibly do because you have to know what your costs are, your true costs are, in order to establish pricing. Otherwise the whole thing doesn't work. So you have to know your margins, and what I like to say, is the margins create actually the floor for your pricing. That means that's the lowest price that you can charge. You can always go up from there. But you have to have a standard margin and you have…
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