The Price is Right is More Than a Television Game Show

By Rhonda Campbell
The Price Is Right is a popular television game show that pulled in millions of daily viewers during its heyday. Contestants would guess the price to products. The person or couple closest to the actual price of the products would win a chance at larger grand prizes. There were times when Bob Barker, the game show’s former host, looked like he wanted to give contestants the right price just so they could win a new car, van, living room set or vacation trip.

Land on the Right Price for Your Creative Business Products and Services

But Bob Barker never gave the right price away, no matter how tempted he may have been to help a contestant out. The market your business operates in isn’t going to tell you the right price you should place on your products and services either. However, it’s imperative that you find the right price for your products and services. You also need to know when to place your products and services on sale and for how much.

To discover the right price for your business products and services, consider:

• The amount of net revenues you need to generate each day and week to keep your business solvent. Factor in expenses (e.g. taxes, utilities, rents) to arrive at net revenues.
• Your customers’ preferences, wants and perceived needs. Understand your customers, including what they generally pay for products and services like yours. For example, if you sell e-books, study e-book prices at online retailers like Barnes & Noble, Amazon.com, and Cushcity.com.
• The market your creative business operates in. For example, if you are in the music business, you may want to price your digital songs at a lower price than your CDs to attract and build on the growing digital music market. It’s working for the e-book industry.
• Traditional industry-wide price shifts. Stay aware of seasonal price changes in your industry. Consider adjusting prices on your products and services during these seasons to stay competitive.
• Dipping your foot in the water before diving in the pool. Test the market by running one to two sales and measuring increases in customer traffic, product/service consumption.

Your business brand, personal image, as well as the sales abilities you and your team possess, also help to determine the right price for your business products and services. Strengthen your sales skills and your brand and you may be able to increase your prices and still experience an upswing in sales.

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