The Money Podcast Financial Fair Exchange: More Value More MONEY
Have you ever wondered where to start when pricing your products or services? Did you know that there’s a sweet spot between the value you’re offering your customers and the profit you and your business are making? Pricing your products and services and achieving ‘fair exchange’ in your marketplace is essential to growth, disruption, sustainability, profitability, and self-worth. Tune in today to discover how you too can price and position your products and services perfectly and create...fair exchange.
KEY TAKEAWAYS
- In your business you want to increase your feed and create a great product and service with a fair but healthy profit margin, you want it to be sustainable I.e if there is a disruption to your market you don't get dramatically affected as well as being able to price product prices to coincide with inflation.
- The concept of fair exchange is where there is a focal point between a fair and sustainable profit margin and the utility, value, and gratuity of the client.
- As a client, you need to be able to allow the producer of the product you’re using to be able to make a fair and sustainable profit, however, there should be a balance whereby you are getting value for your money from the product or service experience.
- You cannot have a perception of value without a price.
- To create a fair exchange price you need to think about your industry experience, self-worth and value in the market, competitor pricing, and overheads. You then need to start with an initial version 1 price.
- If you start with a version 1 product priced slightly lower, if the product isn’t yet perfect then you create a fair exchange environment whereby the customer may not be getting the completed, perfect product.
- The market will tell you how to value your product through demand, through people actually paying for your product and services.
- If you want to continue to increase your prices, innovate, add extra value, add more on that is of high perceived value to your client that is of low cost to you. Make sure what you do is different from your competition.
- Start at a price that creates volume and good value that gets case studies and referrals and then increase your prices until you reach a ceiling where the elasticity starts to stretch and the volume of sales starts to reduce.
- Give value first and then increase your profit.
BEST MOMENTS
“In reality, what competition does is they keep you innovating, improving, disrupting, fixing and solving”
“The sweet spot is between value and margin”
“Have an element of uniqueness”
VALUABLE RESOURCES
https://robmoore.com/
ABOUT THE HOST
Rob Moore is the host of the UK’s no. 1 business podcast “The Disruptive Entrepreneur,” and “The Money Podcast” as well as an entrepreneur, property investor, property educator, and holder of 3 world records for public speaking. He is also the author of 9 business books, 5 UK bestsellers, and the global bestseller, Life Leverage.
“If you don't risk anything, you risk everything”
CONTACT METHOD
Facebook - https://www.facebook.com/robmooreprogressive/?ref=br_rs
LinkedIn - https://uk.linkedin.com/in/robmoore1979