A great example of different price levels is a story about Dave, the restaurateur. Dave wanted to grow his customer base beyond high-spending foodies. Take a look at this example from the book. Dave’s original question was “should I charge $18 or $31 for a dinner?”
The response: “After some discussion we designed a set of pricing strategies that included early-bird specials, senior citizens’ discounts, regular menu prices; $200 annual charter memberships that included a 25% discount on all meals for a year; discounted three-course meal bundles, lower priced bar menu; premium chef’s table seating and hob-nobbing with the creative genius behind the meal.”
All that instead of charging either $18 or $31! Who knew that so much creativity could be included in pricing a restaurant meal?
How to Avoid Pricing Too Low
Sometimes we as business owners have a hard time understanding the value we bring to the table. I often see business owners (especially new business owners) under-price.
We are often the worst judge of the value we provide.
To cut through the temptation to price too low, and understand the true value of what you offer, try a value-decoder process. This process walks you through 5 steps to nail down a core price that you can work from to build offerings that will deliver more profit.
