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Entrepreneurs: On Pricing and Discounts | Jon Loomer Digital

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Looking back on the past 5 1/2 years, possibly the most difficult and important decisions centered around pricing.

How should you price your product? What if the price is too high? What if it’s too low? Should you offer discounts?

Most businesses err on the side I did in those early days: Underpricing.

Why? Because we lack confidence that our product deserves to be sold. We fear that we won’t sell anything at all. And we desire to have masses buy our product as affirmation.

The truth is that this approach is all wrong. The price you set will attract a certain type of audience. And if you price too low, any discounting (young businesses LOVE to discount) will devalue your product — and brand — even further.

I did it, too. I can see that now. Despite the warnings of peers and mentors, I still did it.

I am not, and never was, an expert on pricing. I didn’t model, plan, project and track psychological behavior to determine my ideal pricing structure. More often than not, I was winging it, guessing and throwing something at the wall.

But when you wing it often and long enough, you start learning some things. This post details what I’ve learned about pricing and discounts.

Read complete article here:

Entrepreneurs: On Pricing and Discounts – Jon Loomer Digital.