Perfecting Your Price Points

Perfecting Your Price Points

In our last blog, MeloTel excitedly introduced brand new pricing for our VoIP Telephone Services. Be sure to call us up at 1-888-MELOTEL to figure out what tier best represents your business to get the best pricing possible for your VoIP services. Of course, we also blogged about ways that you can set price points for your own business.

Wahm.com lists a number of suggestions that serve to help entrepreneurs to decide upon appropriate pricing for their goods and services. Naturally, if you are too expensive, you may scare customers away. But you also don’t run to run yourself out of business by setting price points that do not generate profits. How to avoid this?

Decide What To Charge For. According to the website, “the quality of the product and the demand plays a vital role in the pricing of a product. You will certainly not expect your customers to buy a poor quality product for a higher price. The consumers should feel that they are paying the right price and obtaining the best service or quality in return. The same logic applies to the consumer demand as well.”

This is exactly why MeloTel has come up with its new and improved rates for VoIP telephone services. We are well aware that each business is unique and therefore, they do not all require the exact same type of service. As such, they should only be paying for the type of service that best suits their needs. Our new rates guarantee that our clients get the best prices possible for what they need.

As Wahm.com points out, if there is less demand of a particular product or service, you don’t want to increase the price for it. Instead, it’s important to gauge the consumer demand for what you offer and adjust the price accordingly. Sometimes a good price can help develop more interest in the product or service.

As customer demand grows, you may want to consider increasing the price point to generate greater profits. Always consider, however, the value to the customers, making sure to never give them the impression that they are not receiving value for the money they are paying.

Consider the Current Market. Although you don’t want to use your competition as the barometer by which you decide upon your prices, it is important to understand them. Being able to offer your customers an experience that is unique and superior to your competitors will help you to increase your customer base.

At the end of the day, the key to running a successful business is to make a profit. Doing so means deciding upon pricing that will make your company money without warding off consumers who feel as if what you have to offer is not worth the costs. Consider advertising, distribution and labour when deciding upon your prices as well. Here’s hoping these suggestions will lead you to a very profitable year!