Micro, Small and Medium-sized Enterprises (MSMEs) are being urged to consider value-based pricing, which is pricing a product based on the value it creates for their customers.
The advice comes from Managing Director of Sisters’ Ink, Opal Levy, who was addressing the Jamaica Business Development Corporation’s (JBDC) Virtual Biz Zone held recently.
“The pricing strategy that is employed by a business will depend on the business and the market and industry in which you are operating,” Ms. Levy noted.
She said it is important for entrepreneurs to identify a target audience that they will seek to engage.
“As entrepreneurs [you] must interact with these people, so you can know exactly what they want and importantly, what problem are you solving for them. You must also know how much they are willing to pay for the solution, because that is the essence of pricing,” she pointed out.
She further advised entrepreneurs “to look at the products they are selling and note that the value does not have to be in the product itself, but in how the product is offered”.
Ms. Levy said that pricing is critical to business success and will determine the company’s market position, the sales and distribution channels that can be used, the growth and adoption rate, the financial soundness and the service level expected by its customers.
The session concluded a two-part series on Business Strategy aimed at equipping MSMEs with key tools to position their businesses for success.
The JBDC’s Virtual Biz Zone webinars are geared toward stimulating entrepreneurs within the MSME sector.
The webinars are held twice monthly on Tuesdays at 10:00 a.m. via Zoom. Interested persons are encouraged to join by registering at www.jbdc.net.