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More Sales = More Turnover? How to find the optimal Product Price

10/19/2022 | By: FDS

The question of the optimal product price for the own offer drives many founders and entrepreneurs around. If you do not have a comparable product or service, i.e. no direct competition, the price is not formed on the market by competition, but primarily through your pricing and thus according to your internal calculation.

When pricing, always keep in mind: The lower the price, the higher the probability that you will sell to problem customers. Because: You can never please customers with a cheap-is-hungry mentality.

Keep away customers who can't afford your products or services or don't value your time.

Generally, B2B prices must be higher than retail because the volume, i.e., the number of customers you can acquire in a month or year, is much lower.

Customers who look at three- or four-digit product prices with their "consumer glasses" quickly consider you overpriced or usurious and are quickly put off by them, but completely disregard the fact that the cost of acquiring a new B2B customer, the so-called customer acquisition cost, e.g. through high online marketing costs for advertisements or a telephone sales team is usually several hundred euros or dollars. At the same time, the number of potential customers is limited, but the number of competitors fighting for the potential deals is not.

Tags: #pricing
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