Question
We are launching a new service for the bride/wedding market.
There is demand for this service, however, it does not yet exist in the market. For that reason, the customer has no price reference to compare from and then decide.
How do we convince customers we offer a fair price and reduce price sensitivity?
Answer
The only real way that you are going to be able to determine whether your pricing will lead to sales is to run experiments with your customers. You should be testing all of your business model assumptions with customers in order to find your product market fit. Getting sales is not just about pricing, it is more complex. Your entire value proposition has to be spot on in order to generate sales and only your customers can tell you if they are willing to pay for your service and at what price (whether it is a new concept or not). Through running experiments you will soon determine what works and what does not. If you are not familiar with Lean Start-up I suggest that you read up on the approach as it will assist you in determining your product market fit that will in turn lead to the generation of sales. I would be happy to discuss this further.
