Profitable Pricing Strategies

There are many different pricing strategies you can use for various types of businesses. It can be difficult to understand which one is most likely to work well for your business model, or which one is likely to be most profitable, which ultimately is the main thing you should care about with regards to pricing. Keep in mind that there is virtually no way to appeal to 100% of your target demographic. For example, if you price higher you will appeal to those who perceive price as quality and have the income to afford this perceived quality, however you may price yourself out of the market for those with less disposable income and those who are more price conscious. Conversely, if you price lower you will appeal to those price conscious people, but those who see price=quality may think your product is not worth buying. As you see, there is a dilemma involved when pricing a product, and the only way to remedy that is to create multiple products specifically for different segments of your market. However, this can backfire. For example, if you create one product with more features for more money, the people who buy your cheaper package could feel cheated because they feel they got a lesser quality product.