The good news about pricing is that you can guess, be wrong, but still be right enough to build a great sustainable business. Maybe you’re leaving some money on the table, but, like my dad always says, no one ever went broke making a profit. However, you are not allowed to ask people:
- “What would you pay for this?”
- “Would you buy this for $20?”
- “How much do you think this is worth?”
- “What’s the most you’d pay?”
And these are the questions I hear people asking over and over. You can’t ask people who haven’t paid how much they’re willing to pay. Their answers don’t matter because there’s no cost to saying “yes” ”$20” “no” ”$100”. They all cost the same – nothing. The only answers that matter are dollars spent. People answer when they pay for something. That’s the only answer that really matters. So put a price on it and put it up for sale. If people buy that’s a yes. Change the price. If people buy, that’s a yes. If people stop buying, that’s a no.