Ameet Parekh Review

1. FRAMEWORK FOR ENTREPRENEURS TO PRICE YOUR PRODUCTS & SERVICES One element that makes or breaks any business is how well you have priced your products or services. Unfortunately, majority business owners have absolutely zero clue on what frameworks or what principles to utilize in creating the right pricing strategies for their target market keeping both theirs and customers win in mind. So today,Ameet Parekhwant to demystify the exact parameters that you need to focus on as an entrepreneur when pricing your products or services, and for business owners who already have their products and services in the market you can use these parameters to analyze whether you have done your pricing the right way or not. So let’s get in to the framework Ameet Parekh’s Review System. 1.Conduct a market research: This is the first step for any business owner when they are approaching pricing their products or services.There are a couple of factors within your target market which will directly impact your pricing decisions. Let’s understand what those factors are: a.How competitive is your market– this means how many other players are offering the exact product or service in the geographical region you are operating. Now this is where you will have to be extremely cautious because if you are dealing in an extremely competitive market, then it means that the supply is more than the demand. Which means, you will have extremely limited scope of pricing yourself differently. Because the moment you overprice you will lose to your competitor, if you underprice, you will not make money. So the best practice is you follow the market pricing and win loyalty of customers through exceptional service. b.Understanding market growth– this is something that you need to analyze for your own industry and check whether over a period of time the demand is increasing or not. If the demand side of the business is increasing consistently which means in common terms your industry is booming, then 3 critical parameters will lead you to become a market leader and lead your pricing. I. II. III. Extremely efficient TAT, Affordable and quick delivery, Exceptional customer service. For e.g. The ecommerce industry has been booming in India. Initially, say 10 years ago, the demand was limited and suppliers were also limited. Then 5-7 years ago, demand started booming and supply also started booming. Many companies started emerging- Snapdeal, Ajio, Amazon, Myntra, Flipkart. But the only reason amazon is able to lead these industry is because . I. Nobody could beat their TAT, II. Their customer service is unparalleled, and because of these reasons, they are able to charge a premium to their merchants and lead their revenues and profits.

2. 1. Consider your business vintage: Now what do I mean by business vintage. Business vintage means, since how long your business is in operation. This is another crucial factor to determine the right pricing for your products and services. Now if your business is only a few years old, and you are competing with other businesses who are in the industry for the last 10, 20, 30 years, then obviously you cannot charge the same price for your Products as them. So you have to determine how will you penetrate the market and what are the things that you can do differently and how can you offer more value at a different pricing than your competitors in order to start capturing some market. One way to do it is by incentivizing your customers to work with you. You can offer them some deals, you can offer some freebies, and you can offer some Kind of free service – anything that will make them feel like they are getting more than what they asked for. 1.Building Brand value: Another crucial aspect that is key to your pricing strategy is building your brand value. A big mistake most business owners make is they do not take any proactive efforts to build their brand. Unless and until you work on improving your brand presence, and take active efforts by doing offline/online PR, collaborating with industry experts, gathering credibility through awards, Certifications, you will forever be stuck in price wars with your customer. When you actively work on building your brand, you will change your position in the market and establish yourself as a leader, and take yourself to a level where you too can command a premium price for your products and services. 1.Create a win-win situation: One of the biggest blunders that you can commit is over delivering on your products and services and charging peanuts in return, or charge a premium and deliver peanuts to your customers. You have to walk a fine line between the value you are offering and the price you are charging for it. What you are looking for is to create a win-win situation for both you as well as your customers. What I mean by this is, you should determine a price point where you are not operating on wafer thin margins while at the same time you are not overcharging them. What you effectively need to do as a business owner is to position your products and services in a way that the perceived value of your products and services is much higher in your customers mind compared to the actual price that you are asking. Only when your customers will value your products and services more than money, will they actually give you money. So what you are looking at is creating a value for money pricing which creates a win for your customer and create a win for you. So Ameet Parekh want to get your focus onto these critical parameters that entrepreneurs must consider to get their pricing strategy right.