Pricing COMPLETE Guide (2023) Learn how to set the best price for your products

1. WELCOME TO Telegram Blast PRICING | COMPLETE GUIDE (2023): LEARN HOW TO SET THE BEST PRICE FOR YOUR PRODUCTS We have created this COMPLETE Guide to Pricing 202 4. In it we are going to teach you everything you need to know about pricing methods, strategies, psychological techniques and much more. Are you ready? Let's go! FACTORS TO CONSIDER WHEN SETTING PRICES

2. There are different factors that you have to take into account when setting your prices and that are essential for the success of your business. KNOW YOUR CUSTOMER It is essential to know your Telegram bulk message sender buyer persona and the market segment you are targeting. Try to define this group of people in as much detail as possible: demographically, what they buy from, whether they are price sensitive, whether status is important to them… Once you have done this research, you will be able to determine who you are targeting with your product and you will be able to set the price accordingly. KNOW YOUR COSTS It is also essential that you have a clear idea of how much your product costs , since when setting prices you have to cover these costs and also achieve a certain profit margin. It is important that you have a good idea of how many products you need to sell to start making a profit . Remember that the cost of a product includes both fixed and variable costs, and that you must include these when calculating the estimated cost of your product. Once you have done this, decide what percentage of your costs you are going to make a profit, this will depend on your business and sector. There are businesses that do not take these costs into account and often set a price that is too low. Others, on the contrary, think that they will be able to make a profit with just one product, and set a price that is too high. Ideally, you should write down in a spreadsheet all the costs you need to cover each month, which includes: Your current product costs (production, marketing and sales costs). All the operating expenses of your business. Costs associated with debt interest. Your salary as a business owner. The return on the capital that you and other owners or shareholders have invested. Capital for future expansion or to replace depreciating assets.

3. You need to include the amount of each item, and the total should give you an idea of the gross income you will need to generate to ensure you cover all your costs . SET AN INCOME GOAL You need to set a revenue target for your business . This revenue is divided by the costs of producing, marketing and selling your product, and this will give you a price at which you can sell it. If in your case you only have one product, the process is very simple. Estimate the number of units of your product you will sell next year, and then divide your revenue target by the estimated number of units sold. This will give you the price at which you need to sell your product to achieve your revenue target. If you have different products, you need to tailor your revenue goals to each product. Once you have defined these goals, you need to do the same calculation as before. This will give you the prices at which you need to sell each of your products.

4. Know your competition It is also useful to look at your competition . If they have a product similar to yours, this can serve as an initial guide for setting your prices. See if your product offers a differential value compared to your competitors, for example, you can include an additional service, perhaps the consumer perceives that your product is of better quality… In this case, you may be able to set a higher price than your competitors. To do this, you can carry out a study in which you compare the prices of your products with those of your competitors to find out how they are perceived by the market. Know the direction of your market It is important to keep in mind where the market you are going to operate in is heading , and whether it will undergo any future changes that may affect your business. These changes may be caused by laws that may affect your sales, or even by natural disasters or social conflicts. You also have to take into account the actions your competitors may take, and the possibility of entering into a price war with them at some point. STEPS TO SET YOUR BUSINESS PRICES 1. Determine the cost of your product The cost of your product is the total amount of money it costs you to create it . This cost can be easily calculated by taking into account two types of expenses: direct and indirect.

5. Direct costs : these are costs that can be clearly associated with the manufacturing of the product. (raw materials, materials, labor costs, etc.) Indirect costs: these are the costs that do not have a direct impact on the manufacturing of the product (additional labour, electricity and water consumption, telephone bills, rent, insurance, advertising, etc.). 2. Choose the type of pricing strategy 1. Competition-based pricing strategy This pricing strategy is based on comparing your products with those of your competitors, so that you can determine what the average price is. This will give you an idea of the range in which you could set your price. You can choose between: Setting your price ABOVE the market average (you increase your price by adding more value to your product). Set the SAME price as the market average (it is safer and will allow you to attract more or less the same customers as your competition). Setting your price BELOW the market average (this will allow you to "steal" customers from your competition by setting more attractive prices). At ThePowerMBA we have set a price that is BELOW the market average for traditional masters 2. Cost-based pricing strategy This is a simple strategy that is based on adding the desired margin to the costs of your product, which gives you the final market price of your product. When setting this margin, you have to be careful that it is not too low, because if this happens, your business will not be profitable in the long term. Minimalism Brand sets the price by adding a margin to the costs of its product 3. Anchor pricing strategy

6. This strategy is based on setting a price for a product and then immediately setting a lower price. This produces a discount effect that can be effective if executed correctly. A clear example of someone who applied this strategy was Steve Jobs, who stated that the value of the new iPad was $999, but that the price at which it would be launched on the market would finally be $499. Mailchimp sets an anchor price of $299 with the aim of selling the $14.99 price, which makes it seem very cheap. 4.Dynamic pricing strategy This strategy involves demand and seasonality, meaning that the product will vary depending on the situation of market trends. This means that prices must be constantly changed (example: airlines and flight prices).

7. This is the Hotel Price Index (HPI). Prices vary according to seasonality. 5. Freemium pricing strategy This is when a company offers a basic version of its product with the aim of enabling users to access higher versions with better features in the future. This is a strategy used primarily by SaaS companies and software companies. This way, the customer can get a first idea of what the product is like. Spotify 's business model is freemium. It offers you a free version with certain limitations. 6.Skimmingpricingstrategy This strategy is based on entering a market with a high-priced product and gradually lowering it over time. In this way, the company can get the most out of the product, generating the maximum possible profits in this period before starting to lose demand. It is a model used mainly by electronics stores, since this type of product loses demand as time passes because it becomes obsolete. Apple sets very high prices at launch and gradually lowers them 7. PENETRATION PRICING STRATEGY This strategy consists of entering the market with a price lower than the market average in order to attract a large number of users. The price is gradually raised as you gain the loyalty of your customer base. It is the opposite strategy to skimming. This strategy is useful as long as you manage to cover your costs. Netflix used the penetration strategy and quickly became the market leader

8. Premium pricing strategy 8. This is when a company sets high or very high prices because it wants to position its products as luxury, premium or exclusive products. This strategy is based on playing with the perceived value of the product, rather than on its real value or production cost. It is a branding-based strategy in which the brand seeks to provide a higher value and a certain status to its products. Some markets that usually work with this strategy are the fashion and technology sectors. Ferrari sets high prices that turn its cars into premium products 9. Bundle pricing strategy It is the strategy by which a company offers several products in a pack and sells them for the price of one. You can choose to sell them as a set of products or services, or sell them as separate products but belonging to the same pack. This strategy can help you offer added value to your customers and make them willing to pay a higher price for more than one product, as well as making it easier for them to try other products you offer. Primor offers packs with different perfumery and cosmetic products 10. Hourly pricing strategy Used by freelancers, consultants, etc., it mainly consists of setting a price for the time of service offered. A certain rate is set for a certain number of hours. 11. Pricing strategy per project This is the opposite strategy to hourly pricing. It is based on a flat rate for each project completed. It is also used by freelancers, consultants, etc.

9. 12. Customer value-based pricing strategy It is when a company sets the price of its products or services based on what the customer is willing to pay for them. With this strategy you can increase the feeling of belonging to your brand and loyalty on the part of your customers. However, it also means constantly monitoring them in case these customer profiles change, because if this happens, you will also have to modify your prices. Psychological pricing strategy 13. As the name suggests, it is based on consumer psychology to increase your sales. We will explain some techniques at the end of the article. Geographic pricing strategy 14. This strategy is used when different prices are set for certain products or services depending on where the market is located. You can use it when your client buys from you from another country, or when the market changes in terms of its economy or people's salaries. Discount pricing strategy 15. This strategy is similar to anchor pricing, except that here the initial price does exist. It consists of setting a price higher than the market average and gradually offering discounts, reductions and other types of opportunities for customers. It is widely used in the fashion industry. As you can see, it is possible to combine several strategies depending on your business, your sector and the current situation of your company.

10. 3. Review your prices regularly Once you've calculated your costs and chosen your strategy, you need to review your prices periodically. It's essential to monitor them, as well as to keep an eye on the profitability of each of your products on a monthly basis, and not just the overall profit of your business. You need to be very clear about how each of your products contributes to your monthly revenue goal. Keep in mind that demand for your products may rise or fall, or that certain additional costs may be added that make the production of your products more expensive, so you would have to vary the prices of these. Never stop observing new trends and changes in your market, as well as the movements of your competition. WHEN TO RAISE OR LOWER PRICES? The price of your product varies depending on the factors we have seen above. To determine when you can raise or lower prices, you need to consider what's already working for your business. That is, analyze how profitable your products are and focus on improving the ones that are already working. If any of them are costing you money, try to fix them as soon as possible. You also need to review the costs of your products, because if one of your products is not profitable, it may be because the cost is too high and not because the price is too low. WHEN TO RAISE YOUR PRICES AND HOW TO DO IT It is important to try out new prices, new offers and combinations to sell your product at a better price. Raise the price of your product while offering an extra or

11. special service to your customer, and then measure how it has affected sales and the gross profit of the product. This way you will know if it may be interesting to keep it or not. Constantly monitor your prices and costs to ensure that you remain competitive in the market and that you are generating the profits that your product really deserves. In fact, the best way to know if a product's price is correct is to look at the sales volume immediately after making this change. You can also look at your competition, since if the change is positive, they will probably react by adjusting their prices. But be careful, raising prices too sharply can have a negative effect on your customers. That's why we recommend setting a medium- and long-term plan in which you gradually increase prices by up to 10%. This way, if at some point your business goes through a difficult situation in which you are forced to raise prices, the change will not be so drastic. WHEN TO LOWER YOUR PRICES AND HOWTO DO IT When you set a price that is too high, you may lose some of your potential customers. You can offer discounts or give away something with the purchase of your product to attract new customers. This way, the consumer thinks they are getting a discount, but in reality the price remains the same. Lowering prices is usually not a good practice unless you want to gain market share by connecting with more price-sensitive customers or when competitors lower their prices. Instead of lowering prices, you can offer less for the same price, reducing costs without appearing to reduce the value of the product to the customer. 10 of the best pricing techniques

12. We've compiled some of the best pricing techniques in this article by Nick Kolenda , which gives us some super practical information for setting prices for your business. Highly recommended! Technique 1: Reduce the left digit by one The digit on the left is very important because it has an anchoring effect that makes people perceive that the price, in this case, is in the range of €20, when in reality it is closer to €30. That is why typical prices ending in .95 or .99 have been used for so many years. This effect is more powerful when the number on the left changes. For example, from €5.79 to €5.80 it will not change much. On the other hand, from €5.99 to €6, there is a big difference. Technique 2: Use a small font size for prices If you display your prices in a small font size, your brain will automatically associate this figure as being smaller than it really is. If you also place larger elements around the number, this will reinforce the reduced perception of the number. Technique 3: Remove the price point As in the previous technique, the more digits appear, the higher the price perception.

13. TECHNIQUE 4: USE WORDS RELATED TO A SMALL MAGNITUDE You need to pay special attention to the words you place near your prices, as they can influence your customers' perception. Try to use words that refer to small magnitudes. You can use adjectives like small, low, tiny, reduced... This way you will be able to modify the users' perception. TECHNIQUE 5: BE PRECISE WITH HIGH PRICES Buyers pay more money when prices are specific. It is not a matter of negotiations, but rather that specific prices are perceived as being lower. This is mainly because these are mostly used with low numbers (€1.55, €3.60). TECHNIQUE 6: PLACE LOW PRICES ON THE LEFT AND HIGH PRICES ON THE RIGHT People perceive numbers as if they were on a horizontal line, in which they grow from left to right. Therefore, if you place prices on the left, customers will perceive lower amounts than on the right. On the other hand, you have to place the high prices on the right so that the mental processing of them is coherent and more fluid.

14. TECHNIQUE 7: USE ROUND NUMBERS Round numbers, that is, without decimals, are processed more easily. When this happens, customers perceive the price as "what it should be", which is why they work better for emotional purchases, and vice versa. Since decimal prices are more difficult to process, they are more suitable for more rational purchases that involve greater decision-making. However, try to avoid round price ranges for emotional purchases, such as €100 or €1000, as they are interpreted as larger amounts. TECHNIQUE 8: ADD VISUAL CONTRAST TO DISCOUNTED PRICES

15. If you visually distinguish the price of your product with a reference price (for example by using a different color), the perceived difference between the two prices will be greater. This effect also works with the distance between two prices – the further your price is horizontally from a reference price, the greater the difference is perceived between the two numbers. TECHNIQUE 9: FOLLOW THE "100 RULE" When adding discounts to your prices, always try to make the perceived value of this discount as high as possible. Here you also have to play with the contrast between the price and discount numbers.

16. You should try to make the discount number as high as possible. That's why percentages work better for prices below 100 euros, and whole numbers work better for prices above 100 euros. This makes the perceived numerical magnitude of the discount larger. TECHNIQUE 10: OFFER EASY-TO-CALCULATE DISCOUNTS To maximize the perceived value of the discount for your customers, try to use round numbers, since these are perceived as larger amounts, as we have explained in a previous technique. The perceived difference between numbers with decimals (3.59 and 4.27) is smaller than that between round numbers (6.00 and 7.00). In addition, this will make it easier for the consumer to process the price. 5 NEUROMARKETING STRATEGIES (INFOGRAPHIC) To finish the post, we want to leave you with this infographic, which includes some pricing strategies based on Neuromarketing, so you can share it on your social networks. We hope you enjoyed this 2023 Pricing Guide and that it helped you learn some pricing strategies and psychological techniques that influence your customers' perception.

17. Contact Us Website: https://www.tgblast.com Telegram: https://t.me/latestdat Whatsapp: 639858085805 Phone: 639858085805 Email: info@tgblast.com Address: Blk 34 Lot 5 Easthomes 3 Subd Estefania, Bacolod City, Philippines,6100