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MenuHow can I figure out the pricing of our competition?
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Why do you need to know about the pricing of your competition in the first place? If you're offering great value, people will buy from you even if you're charging 5 times more. If you want to offer the lowest price possible to get more clients, then ask yourself how little can you actually charge. And put that price.
Spending the time to identify the price of your competitors is a waste of time. In 99% of the cases.
1. Buy a Google Voice number
2. Call using a nickname
3. Do not ask about the price when you get on the call with the sales team or whoever let them ask questions and do their pitch on the phone. Depending on what it is they may want to do demo with you via Join.Me or Skype. Just go with the motions.
4. Ask about how they separate themselves from the competition. What makes them better?
Companies love talking about themselves. e
5. Finally at the end ask about pricing.
I have done it many times.
Do you know any of their customers? Try approaching one.
Alternative, if its a more commodity type service or product, see if you can find it on line and figure out what its selling fore.
One simple way you could do this is to offer a price-match guarantee: tell you prospective customers you will be match or beat (even by 5% or 10%) your competitors price, on production of a quote from your competitor. That way, you outsource competitive pricing intelligence to your customers. Nothing wrong with that!
Your buyer’s willingness to pay is equal to the competitor’s price plus positive differentiation value minus negative differentiation value. In other words, whatever your competitor is charging plus how much the buyer values what you do better, minus how much the buyer values what your competitor does better. You may not know how much your competitor discounts, but if you can find their list price it can be helpful. If your competitor sells to the government, their prices are likely on the GSA price list. If you use a sales channel or other types of subcontractors who also partner with your competitors, they likely have the information you seek. Often, they will learn how much the competitor is charging. Ask sales where the information came from. If the information came from a buyer’s procurement agent, they are likely telling you your competitor’s price is lower than it really is. Consider creating your own competitor price database. Log who gave it to you and the original source of the information. Over time, you may create a clear picture of your competitor’s prices and maybe even their pricing strategy.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
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For me personally, no. However, what you really need is a larger data set. Gumroad just did a post on prices ending in "9": http://blog.gumroad.com/post/64417917582/a-penny-saved-psychological-pricing 37signals started with prices that ended in 9: http://37signals.com/svn/posts/1287-ask-37signals-how-did-you-come-up-with-pricing-for-your-products ... but they later did research and found it didn't matter (for them). The answer for YOU will likely be to test these things for yourself on your SaaS app.JJ
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If you mean the conversion rate is the same (meaning you're making a lot more revenue with the larger price), then that's the right call. If you mean that your net profit is the same but you have higher unit sales on the first price I would go for the lower price to have more customers (and more chances to have them buy an IAP eventually, or leave a good review).SR
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How do I become a consultant?
STOP!!! DON'T DO IT. GO GET A REAL JOB!! PLEASE! You don't plan to be a consultant. You become a consultant because the experience and wisdom you have is so obvious that those around you are eager to pay you for your insight. It's a calling -- not a job. Giving your "business advice" to a startup is like telling a 2-year-old to go "poo poo in th potty" -- anyone can do it. You just have to be a little bit more sophisticated than a baby. To service people who have money (and who are serious about how they spend that money) you need to take you game to a whole new level. I suggest you intern or partner with an amazing consultant who does this already. Learn. Do the gritty work that no one else is wiling to do. Everyone is a coach. Right? Drink a beer on game day and you supposedly know more than than the dude on the sidelines with the clipboard. But is that "really" the case? Of course not... DON'T BE A COACH. BE A LEADER.DW
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