June 8th, 2010 
Maria Helm 
Small businesses tend to focus on marketing when launching new products or services. But a sometimes overlooked strategy can play a key role in profit and success: pricing.
When pricing your products or services, consider these tips to set prices that say value to potential customers and help increase your profitability:
1. Set prices that capture value. Set prices that capture the value customers place on a product by thinking like a customer. Customers evaluate a product and its next best alternative(s) and then ask themselves, “Are the extra bells and whistles worth the price premium or does the discount stripped-down model make sense?” They choose the product that provides the best deal (prices vs. attributes).
2. Provide pick-a-plan options. Customers are often interested in a product but refrain from purchasing simply because the pricing plan does not work for them. While some want to purchase outright, others may prefer a selling strategy such as renting, leasing, prepaying or all-you-can-eat. A pick-a-plan strategy activates these dormant customers.
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