Dave Lukas Chats with Per Sjofors
227: How to Price Your Offerings and Ensure Customers Will Pay More with Per Sjofors
This week’s Misfit Entrepreneur is Per Sjofors. Let me ask you something…How do you know how to price your products and services? How do you know which customer segments to focus on that will pay your top dollar for your product and services?
For most, it is a shot in the dark. They either price based on their costs and build in a margin or do what they “think the market will want or be in the range of the competition.” But is that reality? What if there was science behind pricing that could help you know exactly how to price your products and services and the best market segments to sell to with pinpoint accuracy?
Well, that is what Per has dedicated to better part of his life to doing. Per is a serial entrepreneur creating businesses that have gone from $0 - $72m/2 years, $10m - 28m/3 years, 0 - $15m/2 years. His methods have helped over 700 businesses all over the world and has been featured everywhere from the WSJ to the Street. His latest business is called Atenga and it is a culmination of all his work on pricing into a AI powered solution that shows companies how to price their products the best way and the best markets to sell to.
I bet you can guess why I’ve asked him to be on the show and that is to share his wealth of knowledge about what he has learned on how to price products and find target markets.
Per had a chance to run a couple of companies in Europe before coming to the U.S. to run companies and build them here. Pricing products and services was always a challenge and hit and miss. Everything per studied was very academic and theoretical that is couldn’t help them understand why some pricing strategies worked and others didn’t. Per saw a gap in the market in helping companies not only price their products and optimize the market fit, but to also find the right target markets to drive the highest sales volume and profitability.
He started a consulting firm providing those services.
What is the #1 thing companies get wrong when it comes to pricing their products and determining their target markets.
At the 11:40 mark, Per goes through his method for pricing…it’s best to listen
Can you give some action steps in each area that an entrepreneur could take on their own?
What goes into increasing a customer’s willingness to pay?
A great example is the gold Apple watch for $17,000 when Apple really wanted to sell the $349 watch. The press was covering the $17,000 and made the $349 look very affordable.
At the 28 min mark, Per talks about how buyers lie in giving feedback…
What advice can you give on starting and growing a business?
Any other advice for entrepreneurs?
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