Pricing any product, service or item can be the most difficult thing to do correctly for any small business or individual. If you price your service too high, you could be pricing yourself out of the marketplace. On the flip side of that, if you price your service or product too low, then you could be cutting yourself out of some much needed cash flow. Theres a chance you could also be missing out on a number of customers who see you as too cheap. There is such a thing as reassuringly expensive!
There is also the difficulty of how you actually price your product or service. There is the actual price for the item, for what it is, but also there will be a cost and a value to how that product or service is created and also what that product or service with then enable the customer to do.
For instance, just a couple of weeks ago I purchased a cable. It was a fairly simple cable, made by a company that you may have heard of – Apple. This cable enabled me to link my ipod touch to my television and for this five inch long cable with a connector at one end and a box with two connectors at the other end I handed over fifty pounds. Yes that’s right you heard me, fifty pounds! Now obviously I flinched at this price tag and as I walked away from the shop and sat back down at my desk. I did take a moment to just stare at my fifty pound cable and allow the bruising to my wallet to properly come out. But then I thought about why I had bought the cable in the first place.
This cable would hook up my ipod with the TV and allow me to stream my Eurosport Player app straight to the TV, I thought about the week of World Championship cycling that was about to start, I thought about watching a small independent movie that I could only buy though i-tunes on the big screen, I thought of next years classics, the British and World Superbikes for years to come. That fifty pound cable would be a real investment that will give hours of joyful service.
Also, a subject that I have blogged about here before, board games. Now any new board game could easily cost you upwards of fifty pounds, we recently spent a little over sixty pounds for the incredible successor to Pandemic, Pandemic Legacy Season One. Now you may well be surprised by the figure and you may well be frightened away from making the purchase. Well, from one point of you I cannot blame you, fifty pounds for a playing board, some plastic markers, a couple of packs of cards and an instruction pamphlet may sound like a lot of money, however you are not paying for these items in the box. You are paying for the intellectual property of the game, the original design, the artwork, the writing and the enjoyment that you will get from learning it and playing it for years to come. For that reason, I would say that for a board game like Pandemic, Flamme Rouge or the Dead of Winter these sorts of prices are entirely justified.
Now if you have a dog, or if you enjoy spending some out and about in some of the beautiful countryside that the Isle Of Wight has to offer, then just maybe your dog has picked up a tick. Here in the UK we are lucky in the respect that we don’t have ten foot long poisonous snakes, huge tarantulas the size of dinner plates, grizzly bears, tigers, or sharks but we do have ticks and a tick is truly one of the most horrific creations that you will meet in this country. If you find a tick feasting on your doggy pal, they can be very difficult to remove as they basically burrow under the skin. If you try to pull it out then you can pull its body off and leave the head behind which can then get infected. For years when our old dog would get the odd one, I would end up trying to dig them out with tweezers in vain. The stress and horror of trying to pull parts of an insect out of your best friends skin is a truly horrible thing to experience.
Then arrived one of the very best inventions in the history of animal ownership, the Otom Tick Twister. The twister is a slice of genius design, a small piece of plastic have a handle and a bend end which slides under the ticks body, you simply twist the handle and pull slightly and the tick rotates out cleanly and in one piece. Simple, fantastic. When I think of the sort of stress and difficulty that this small piece of green plastic has saved me from and the sense of dread of one of my dogs picking up another one, I would happy spend one hundred pounds or more on a replacement.
Just like that cable and the boxes of plastic markers and cardboard, the Otom is a very real investment and will change your life but this is priced as an item, I suppose rather unfairly.
In these times where many people seem to know the price of everything and the value of nothing, how can you put a price on an idea or an invention that will change your life? Taking a step away from yourself and looking at what that product or service can bring you in the weeks, months and years to come will help you gain an overview of what that initial purchase could really be worth.