LoudounPreneur entrepreneurial newsletter
 Information for the Innovative, Enterprising and Brave
July 2015

Are You Charging Enough for Your Product or Service?

One of the biggest mistakes small business owners make is not charging enough for what they sell. Too many entrepreneurs use simple math to figure out how much to charge for their product or service. They decide to compete on price by charging as little as they can get away with and still pay their bills. They think that offering the cheapest price will win them more customers.


That's not a sustainable strategy for the long run. It's basically telling customers that there's nothing special about what you're selling.


It's better to figure out how much your ideal customer would pay for the specific benefit you sell. For example, if your product saves time, think about how much your ideal customer would pay for more free time. He or she might pay 10 times what you're charging just to have more R&R.


You could also set your price to match -- or exceed -- your customers' discretionary spending. Let's say research shows that your clients strive to do more, be more and have more. They're reaching up. Making your service more expensive than its competition sends the message that it's higher quality and more valuable. If you make your service feel like an achievement, achievers will pay more for it.


Just remember that if you do charge more, everything about your business has to support the message about your product's quality. That means your packaging, your website, your office space, and even your business cards have to look as upscale as what your price implies. Work with experienced designers and other professionals who will help make the price you charge look justified.
And be willing to pay more for their service.

Events and Training

Loudoun Tech Startups Happy Hour

Date:     Tuesday, July 21

Time:     5:30-7 p.m.

Place:     The Bungalow Lakehouse 46116 Lake Center Plaza, Sterling 

Cost:      Free


1 Million Cups

Present your business to a supportive group of mentors, advisors and entrepreneurs and get useful solutions to your challenges. 

Date:     Wednesday, July 8, 15, 22 and 29

Time:     9-10 a.m.

Place:    Mason Enterprise Center, 202 Church St., Leesburg

Cost:     Free


Pirhana Tank Pitch Event

Network with the startup community and watch as five innovators present a live pitch to a panel of investors.

Date:     Friday, July 31

Time:     3-8 p.m.

Place:     U.S. Patent & Trademark Office, 600 Dulany St., Alexandria

Cost:     $100, register online

Gut Check From a Guru

"The question I ask myself like almost every day is: am I doing the most important thing I could be doing? Unless I feel like I'm working on the most important problem that I can help with, then I'm not going to feel good about how I'm spending my time." -- Mark Zuckerberg, CEO of Facebook