I think one of the reasons why business owners pay so little attention to price strategy is because they assume they have no control over their pricing. “The market sets our prices, and that’s that.”
To say that the market sets the price, and you have to choice but to go along with it, overlooks two key facts. First, no two buyers are exactly alike. Second, no two sellers are exactly alike (even where their offers seem to be).
It’s true: buyers decide what your product is worth. And it’s true that your competitors limit how much you can charge. But it’s also true, and this is key, the value of your product, and who your competitors are, is subjective.
This means you can influence buyers’ perception of your product compared to their alternatives. Rather than being just another product X, worth no more than every other X, your product can be seen as being different and better in ways that justify paying a higher price for it.
For example, Shelly doesn’t sell a copywriting workshop that costs $199. She sells increased sales and profits. Compared to buying a $19 book on copywriting, her course is expensive. But, compared to the cost of hiring a copywriter, her training is a bargain.
So what are you doing to shape the dollar value buyers attach to your offer? What are you doing to shape the alternatives buyers compare your offer to?