Setting a new price

Biz Advice · #1 (**permalink**) 09-21-2006, 06:20 AM

We provide training to customers and many of our competitors charge well over $1000 a day for a seminar. We think we could do it for $500 and still make a reasonable profit. Should we sell 20 customers at $500 or 10 at $1000. Which is better?

jase · #2 (**permalink**) 09-21-2006, 06:53 PM

my first thoughts are why not 20 at a $1000

Business Watch · #3 (**permalink**) 09-22-2006, 07:50 AM

As with everything I think it all depends:

-Is there any chance for repeat business from the customers?
-Do you have a location advantage i.e. closer proximity to your target audience than your competitors?
-Can you sell additional products at the seminar to improve your margins

The best thing you could do it test your new price, but always be looking to get additonal cross selling opportunities

Biz Advice · #4 (**permalink**) 09-23-2006, 05:33 AM

Quote:

Originally Posted by Business Watch

As with everything I think it all depends:

-Is there any chance for repeat business from the customers?
Yes we have some other seminars we could offer, but we have not been that successful at cross selling
-Do you have a location advantage i.e. closer proximity to your target audience than your competitors?
No
-Can you sell additional products at the seminar to improve your margins
Right now we do not have any other products to sell at the seminar

The best thing you could do it test your new price, but always be looking to get additonal cross selling opportunities

I hope this helps

Scott Brogan · #5 (**permalink**) 10-19-2006, 05:48 AM

Unfortunately pricing is part art and part science. The best thing you can do is test. Ideally running the test at the same time perhaps in different areas to see the best price/profit combinatioin.

vks · #6 (**permalink**) 10-23-2006, 07:31 AM

I agree you want to constantly test the right pricing. You may also find that at some times of the year you can command a higher price than other times of the year.

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