Price Your Product Right
A simple step-by-step guide to pricing that actually makes you money. Stop guessing, start growing.
1 Simon-Kucher & Partners global pricing study found that 90% of companies fail to price effectively, leaving money on the table. Source: "Global Pricing Study 2023"
2 McKinsey & Company research shows that a 1% price improvement yields an average 11% increase in profits, with optimized pricing strategies often doubling profitability. Source: "The power of pricing" McKinsey Quarterly
Let's Get Started!
Tell us about your business (takes 1 minute)
🧠 Pricing Psychology
Let's bust some pricing myths that might be holding you back
Myth #1: "Lower prices = More sales"
Click to reveal the truth
Truth: Price signals quality. Studies show that raising prices can actually increase sales by improving perceived value. Premium pricing attracts better customers who value what you offer.
Myth #2: "I need to be cheaper than competitors"
Click to reveal the truth
Truth: Competing on price is a race to the bottom. Focus on value, not price. Your unique value proposition allows you to charge what you're worth, not what others charge.
Myth #3: "Customers only care about price"
Click to reveal the truth
Truth: Price is rarely the #1 factor. Customers care about results, convenience, trust, and experience. In fact, only 9% of customers choose based on price alone.
Myth #4: "I can't raise prices on existing customers"
Click to reveal the truth
Truth: Done right, price increases strengthen relationships. When you communicate added value and give advance notice, 95% of customers accept reasonable increases.
💵 Know Your True Costs
Most businesses underestimate costs by 30%. Let's get yours right.
What type of business are you?
Physical Product
I sell tangible goods
Service Business
I sell my time/expertise
Digital Product
Software, courses, etc.
Hybrid Model
Mix of above
📈 Choose Your Strategy
Pick the pricing strategy that fits your business best.
Value-Based Pricing
Price based on customer value, not costs
Example: $997 for a course that saves $10k/year
Tiered Pricing
Multiple options capture more customers
Example: Basic $29 | Pro $79 | Elite $199
Bundle Pricing
Package products/services together
Example: 3 products for $99 (vs $120 separate)
Subscription Model
Recurring revenue builds stability
Example: $49/month or $490/year (save 17%)
Premium Positioning
High price signals high quality
Example: 3x competitor price with premium experience
Freemium Model
Free basic, paid upgrades
Example: Free for 10 users, $10/user after
🎯 Your Pricing Strategy
Here's your personalized pricing recommendation
Recommended Price
How We Calculated Your Price
| Component | Amount | Explanation |
|---|---|---|
| Direct Costs | $25.00 | Materials, labor, and production |
| Fixed Costs per Unit | $15.00 | Overhead divided by monthly units |
| Hidden Costs | $12.00 | Returns, processing, opportunity costs |
| Total Cost | $52.00 | Your true cost per unit |
| Target Margin (40%) | $35.00 | Healthy profit for growth |
| Market Adjustment | $40.00 | Based on Tiered strategy |
| Recommended Price | $127.00 | Optimized for profit & market fit |
Your Tiered Pricing Structure
We strongly recommend consulting with a qualified pricing strategist, business advisor, or financial professional before implementing any pricing changes. They can provide personalized guidance based on a comprehensive analysis of your specific situation.
Startup Savannah and this tool do not guarantee any specific results from implementing these pricing recommendations. All business decisions carry risk, and you are responsible for evaluating the appropriateness of any pricing strategy for your unique circumstances.
📌 Implementation Tips:
Need expert help? Visit www.startupsavannah.org for resources and connections to pricing professionals.