This is a YouTube video titled "How Do You Price Your Product or Service?🤔 | Matthew Ryder" containing a monologue by Matt Ryder recorded in February 2024. In this content, Matt Ryder discusses pricing strategies for businesses, including competitive pricing, undercutting competitors, and positioning as a premium brand, using Michael Kors as an example.
If you don't have an existing business price, shop all of your competitors and then you can take one or two strategies. Do like what Michael Kors did. When LVMH bought Michael Kors, what they did is they had a look around and they said, yep, we are willing to lose an incredible amount of money. We are going to undercut everybody. What that does is it wipes out the marketplace. You would ruin a lot of businesses, a lot of those small to medium sized, like training companies doing from sort of 10,000amonth to like 500k a month. They'd be wiped out and decimated. And then from there you could build the pricing back up, having destroyed all your competitors. That's exactly what Michael Kors did. So you want to shop around, have a look and then you can choose to either undercut everybody or go premium. Those are really your options. So like you want to either add a ton of value and then like position yourself as the premium. Become the Hermes, become the Chanel. If you can't sell it, then you need to drop your pricing because again, you're looking for that 35% close rate.
