THE BLOG
12/16/2010 03:34 pm ET | Updated May 25, 2011

Tips for Pricing Your Product or Service

It can be difficult to determine what you should charge for your offerings. Rather than take a shot in the dark, apply these tips to your pricing strategy.

Do your homework: What else is out in the market place that is similar to yours? How is it priced and how does their offering differ from yours? What does the market dictate?

Do the math: Determine your hard costs for creation and delivery so that you know exactly what your expenses are before you determine your price. In fact, knowing that number at the beginning will also be a great filter for what you deliver and how.

Capitalize on volume: If you are creating a program that you can replicate via subscription based programs or tele-seminars it probably will not cost you any more money to serve 10 people as it would 10,000. So why not make it really affordable so that you get a larger response? Of those 10,000 people a majority may never have heard you before or been aware of your content. That has the potential for many new loyal customers.

Power of the people: Conduct a survey of your current subscribers. Make sure you ask questions that will allow you to get tangible, constructive feedback. For instance, ask them to choose a range of pricing, otherwise you will end up too many people typing in "free", which does not help your decision making process.

Go with your gut: If intuitively you believe a particular price is reasonable, a great value and also worthy of the product, you should follow your gut.

Always think in terms of under-promising and over-delivering. Don't price your products based the amount of time it took to create them. Price them based on the value you add, what the market will bear and the reputation you want to grow.

Do you use any other strategies when determining your prices? I would love to share them with our viral explosions community. Please post them in the comments section below.

Peggy McColl is a New York Times best-selling author and an internationally recognized expert in the field of personal and professional development and Internet marketing. As an entrepreneur, business owner, mentor and professional speaker Peggy has been inspiring individuals to pursue their personal and business objectives and achieve ultimate success. She provides effective Internet marketing solutions for entrepreneurs, authors, publishers, professionals, and business owners, who want to establish an online presence, achieve bestseller status, build their brand, grow and/or expand their business online. You can find out more about Peggy at her website, Destinies.com.