This is a classic mistake and, unfortunately, I encounter it over and over again. When an entrepreneur creates a new product or service, they become worried about the price and they turn to the customers for answers.

The reason for their concern is that:

If they price it too low, the customers may consider it of lower value. If they price it too high, they may place themselves out of the market.

In an attempt to choose the Right Pricing Strategy they tend to misinterpret one of the most basic lean principles: get feedback from the customer. They get out of the building to ask their prospects how much they would be willing to pay!

Nevertheless, there is a crucial problem here. The customer will most likely lie to you about what they intend to pay. In some cases, the customer may even lie to himself/ herself.

After all, if you set a high price (higher than what the customer has in mind) for a product that brings value to his/her business, the customer will not hesitate to pay.

So, what is the right strategy here?

I guess that I would advise you to test your price in the same way you would have tested any other part of the business. Price your product or services in the way I recommended in my previous post, and ask customers to buy it.

Depending on their reaction, you may be able to decide your next step.