When creating a pricing structure, it is important to keep in mind things like your target demographic and all of the real costs associated with running your business. What are other things that help you create a pricing structure? In this video, author Skip Cohen walks you through things to consider when creating a pricing structure.
- When you build your pricing structure…it's really important to recognize…all those bricks in the foundations…that we've already talked about.…First of all, you've got to know your margins.…That means that you have to understand…what your real cost is…and that means, in turn,…you have to understand your target demographics.…So, for example, if you're,…and let's use wedding as an example again,…you're a high-end wedding photographer,…and you're pitching your community,…which might be more blue collar,…but you've got this high-end package.…
Well, you're not necessarily understanding…your target demographics.…Or you might still have a high-end package,…but you've got to do a better job…of educating your clients…and having them understand why it's important…and why these components are in there…that make it cost more.…So, you've got to understand your margins,…you've got to have good handle on what your cost is…every time you go out to do a shoot,…and you've got to understand…what your audience is looking for,…and again, we go back to if I can see the world…
Author
Skip Cohen
Released
1/13/2017- Understanding revenue
- Looking at target demographics
- Understanding your target audience
- Identifying your real costs
- Deciding which products and services to offer
- Pricing your products
- Working with key suppliers
- Controlling your costs
Skill Level Intermediate
Duration
Views
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Introduction
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Understanding revenue2m 42s
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What are your goals?4m 43s
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Full time vs. part time5m 48s
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1. Target Demographics
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Local vs. global2m 44s
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Owning your zip code3m 42s
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2. Understanding Your Target Audience
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Seeing through their eyes1m 35s
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3. What Are Your Real Costs?
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Gear and software2m 48s
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4. What Are You Going to Offer?
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À la carte vs. packages6m 28s
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Fee based?6m 37s
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Services vs. hard goods7m 37s
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5. Pricing
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Single vs. 3–4 tiers2m 58s
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Competitors and your pricing5m 41s
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6. Working with Suppliers
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Using a professional lab3m 42s
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Vendors in your network3m 7s
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7. Creating Added Value
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A complete strategy5m 49s
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Promotional offers3m 46s
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8. Your Costs
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Cost tips5m 8s
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9. When Things Don't Go As Planned
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The economy4m 39s
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Educating your clients3m 4s
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Conclusion
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Next steps2m 9s
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Video: Taking an appropriate margin and the key price points