The price you set for your product or service is one of the most critical decisions you will make. Setting prices too high or too low will have negative consequences on your businesses cash flow. It is important to set prices to allow for healthy margins.
When setting your prices you must do so to allow your business to be profitable. Do not set prices too low at first to try and attract customers. This strategy will not last long and will hurt you in the long run. You must also conduct extensive competitor pricing reviews. See what the competition is doing and what promotions they are running. You will be able to see what is working and what consumers respond to in a positive way. It is easy to call competitors and ask for quotes that you can use in your analysis.
You must make sure that whatever price you set that it at least covers the cost plus adds some for profit. Otherwise you will be working for free. That is a bad way of doing business of course. Make sure you advertise your price promotions on flyers, brochures, postcards, or other printed materials to get your business and prices recognized by potential customers.
There are many different promotional strategies and tools you can use. I would recommend when business is slow some months to start promoting your product or service with coupon codes or time sensitive discounts. For example, “Save 20% off all services, must be redeemed by next Friday the 20th.” Your customers will see that they must take advantage before the deal is gone. You can advertise promo codes on your website as well. Many customers do there research online about companies. Make sure you stand out!