the startups.com platform about startups.comCheck out the new Startups.com - A Comprehensive Startup University
Education
Planning
Mentors
Funding
Customers
Assistants
Clarity
Categories
Business
Sales & Marketing
Funding
Product & Design
Technology
Skills & Management
Industries
Other
Business
Career Advice
Branding
Financial Consulting
Customer Engagement
Strategy
Sectors
Getting Started
Human Resources
Business Development
Legal
Other
Sales & Marketing
Social Media Marketing
Search Engine Optimization
Public Relations
Branding
Publishing
Inbound Marketing
Email Marketing
Copywriting
Growth Strategy
Search Engine Marketing
Sales & Lead Generation
Advertising
Other
Funding
Crowdfunding
Kickstarter
Venture Capital
Finance
Bootstrapping
Nonprofit
Other
Product & Design
Identity
User Experience
Lean Startup
Product Management
Metrics & Analytics
Other
Technology
WordPress
Software Development
Mobile
Ruby
CRM
Innovation
Cloud
Other
Skills & Management
Productivity
Entrepreneurship
Public Speaking
Leadership
Coaching
Other
Industries
SaaS
E-commerce
Education
Real Estate
Restaurant & Retail
Marketplaces
Nonprofit
Other
Dashboard
Browse Search
Answers
Calls
Inbox
Sign Up Log In

Loading...

Share Answer

Menu
Pricing Strategy: How can I convince customers that we offer a fair price if we're providing a new service that does not yet exist?
DC
DC
David C Barnett, I help you buy, sell, plan, value a business answered:

Your service may be new but it must solve a problem, Right? People will accept prices that offer value.

Value = Perceived Cost of Not Buying – Price

The perceived cost of not buying refers to all costs, monetary, time, image, social costs, etc. Some may be harder to quantify and many will be subjective in the minds of different types of prospects.

For example, you may be willing to pay extra for milk at the corner store because of the perceived time cost of travelling to a supermarket which is further away. The convenience store provides value, even at a higher price, because they've relocated the product closer to where you are.

The corporate executive may travel in a private jet because he perceives a 'social cost' if the other bigwigs discover he 'flies commercial.' You get the idea.

You need to identify what the costs are for your prospects not to buy so that you can help define a value proposition for them.

I did this once with a junk removal business. We adopted the tag line 'enjoy the space you paid for' to reinforce the fact that every moment they did not hire us to remove their refuse, they could not use the space they were paying for. This was meant to highlight the perceived cost of not acting.

Hope this helps.

Talk to David Upvote • Share
•••
Share Report

Answer URL

Share Question

  • Share on Twitter
  • Share on LinkedIn
  • Share on Facebook
  • Share on Google+
  • Share by email
About
  • How it Works
  • Success Stories
Experts
  • Become an Expert
  • Find an Expert
Answers
  • Ask a Question
  • Recent Answers
Support
  • Help
  • Terms of Service
Follow

the startups.com platform

Startups Education
Startup Planning
Access Mentors
Secure Funding
Reach Customers
Virtual Assistants

Copyright © 2025 Startups.com. All rights reserved.