How to Know if You’re Priced Too Cheap💲 | Matthew Ryder
3 Feb 2024
Matthew Ryder explains how to tell if you're undercharging. He uses sales data and close rates to show when customers are too eager to buy, a sign your price is too low.
Matthew Ryder explains how to tell if you're undercharging. He uses sales data and close rates to show when customers are too eager to buy, a sign your price is too low.
How do we maximize willingness to pay and how do we price our products effectively? If you have an existing business, have a look at your sales data. If you're getting a really high amount of paid in fulls and you're not using funding, chances are you're like shorting yourself on the money a little bit. The other thing is, if your close rates are really high, like I'm talking 50% or above, and you're not doing like raucous pre financial qualifiers or using offers made or any of that sort of rubbish, then like, chances are you're a little bit too cheap. The ideal close rate for most businesses is like 35%. That's a good measure that you're letting enough people through to where, like not everyone's a lay down. But also it means that your pricing is probably maximized and you're not like leaving too much on the table.
