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3 approaches to pricing a price

Establishing a pricing strategy will allow you to increase your prices structurally and not cyclically.

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3 Approaches to Determining a Happy Desk Award
Photo by timJ on Unsplash

Establishing a pricing strategy will allow you to increase your prices structurally and not cyclically. By that I mean that fixing the price of your services or products can be done in many ways, yet there is only one that is valid.

What is the only real way to increase your profit?
Well, raise your price;-)

Yes, but how?
Even a small increase of 5 to 10% can already have a beneficial consequence for your business. This is what emerges from thepresentation of "Pricing Pact" which I attended recently.

In this article I will browse the interesting points that I found interesting to share with you. If you have any small threads as to how to increase your prices, let me comment on the subject, I'm curious to know them!

Your price leads to a chain reaction

Setting a price is more complicated than you might think and we rarely spend enough time determining the right price for our services and/or products.

However, it is the price that will determine the success of our project and if you neglect this step, you will find yourself sooner or later facing the wall. Often it is too late and you can start all over again, heading square one.

3 Approaches to Determining a Happy Desk Award
Photo by Angelo Pantazis on Unsplash

3 main approaches to determining a price

Generally speaking there are three ways to determine a price.

1. Calculate its price from the cost of manufacturing, delivery,...

2. Aligning with competitors' prices

3. Investigate the value people have of your service

So, what technique do you think is the best?
Well, this is the 3rd technique;-) because what is interesting is that we all have a different perception of price, service or product. This gives us the freedom to target our typical customer and create a product specifically designed for him.

There is a Youtube video in which I describe this at the bottom of the article. Support me by subscting to the YouTube channel "Happy Desk Design"

3 Approaches to Determining a Happy Desk Award
Photo by Jakob Owens on UnsplashOne of the main reasons for bankruptcy

An inefficiently fixed price can have serious consequences. According to one study the third most common reason for bankruptcies is a miscalculation of price. That's why it's really important to take the time to create a pricing strategy.

Companies like Apple and Netflix have understood this. An iPhone that we buy today costs on average 1200 euros while 5-6 years ago it cost only 600.

This figure is not displayed by chance, Apple has clearly decided to target a clientele with high purchasing power.

You're too expensive!

Perhaps you have heard that before? Know this, I have already been told. However, this is normal and we must not fall into this trap. There will always be people who will find your services too expensive, but that is a reason to question you.

Be sure of your rates and highlight them. If you feel that the price is justified, you have every reason to assume it!

Photo by Jakob Owens on Unsplash

You will understand, the price is really the element not to be overlooked! This is an important step that must be part of your strategy. Think about it today and take the time to study the different stages of your strategy that you will put in place. An annual or bi-annual increase must be provided in order to achieve your goals. And don't forget, set your price at its fair value!


Come back to this page whenever you want. Have you found any advice that I might have forgotten when writing? If so, what are they? Leave a comment below or email hello@happydesk.be
Kevin Palombo Happy Desk
Kevin Palombo, Happy Desk Manager

Most entrepreneurs have an inefficient website lacking a clear message. So I proposed a 5-step process to create a custom and coherent website to achieve your goals. See Happy Desk

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