Top Startup Pricing Mistakes to Avoid

Startup Pricing, Top Startup Pricing Mistakes to AvoidSeasoned companies often learn the tricks of the trade in terms of pricing through many years of trial and error. However, many startups make classic pricing mistakes simply because they do not know any better.

Startup pricing mistakes can cause your company to lose sales and fall behind your competitors. So, it is best to try to avoid them. Here are some of the top price mistakes to avoid.

1. Pricing products too high

Many startups price their products very high because they feel it will help to generate more profits. However, the problem with doing this is that it can lead to reduced sales. So, pricing products too high is actually a price mistake that can cause your business to lose money.

2. Pricing products too low

This is the other side of the pricing coin. If you price products too low, then too many people may buy your products, and you may lose too much inventory without generating high enough net profits. So this is another thing to watch out for.

3. Using irregular numbers

If you are not sure what number to price your product at, then you may be tempted to simply choose a random number, such as $23.83. However, the problem with doing this is that people often prefer to buy things that are priced in whole numbers, or at $X.99. So, if you choose a very unusual number for your price point, it can come off as suspicious, or tedious for the shopper.

The shopper does not want to have to think about your price to gain a frame of reference. He or she wants to be able to easily understand your price point. So, stick to whole numbers, or numbers that end in $.99.

4. Changing prices suddenly with no explanation

If your customers get used to your prices being set at a certain price, and then they suddenly go up without any justification, this can cause frustration. Your customers may get the idea that the pricing for your company is sporadic and unreliable. This could cause them to go to one of your competitors just to recapture stability.

So, if you need to suddenly raise prices significantly, you should explain this price increase to your customers. You can do this on your company website, or through an email, etc. If your business has a retail location, you can also explain the price changes to any customers who ask about them. This can help you to keep favor with them. However, it is best to avoid sudden, massive price changes whenever possible.

Conclusion

Startup pricing can be difficult to master for companies who are just getting started. In fact, it is normal for many price mistakes to be made. However, if your startup can avoid the price mistakes made in this article, then your company will be way ahead of the game!

Karin Jakovljevic

About the author

Karin Jakovljevic

Karin Jakovljevic is the head of marketing at Ximble, a powerful, cloud-based workforce management system, simplifying employee scheduling and time tracking for retailers, restaurants and small businesses.

Success Stories

Menchie’s

It was hard to keep Menchie’s young and mostly part-time staff informed about shift changes, until Menchie’s discovered Ximble’s easy-to-use smartphone app.

Fast Fix

Ximble’s easy-to-use scheduling tool allows Fast Fix employees to remotely access shift information, and integrates with their Point of Sale and Payroll systems.

Spry Health

When spreadsheets became too complicated, Spry Health sought simple, cost-effective timekeeping software so they could concentrate on growing their business.

Spirited Gifts

Since switching to Ximble, Spirited Gift no longer struggle with employees turning up at the wrong time, for the wrong shifts.

Re-bath of South Florida

Re-bath required timekeeping software that was simple, flexible, and that could grow with their business.

Vastrm

When they outgrew their own internal system, Vastrm chose Ximble to track their part-time and contracted employees, both in and out of the office.

Excellence Martial Arts

All that Excellence Martial Arts were looking for was basic employee timetracking, with payroll reporting. Ximble’s cost-effective software was the ideal solution.

Collab Inc

Manual timesheets were a poor fit for Collab, and with no easy to feed the data into Gusto they began looking for a viable solution to their scheduling and time tracking headaches.

Carolina Moves

Follow Carolina Moves’ journey as they transitioned from using an archaic time tracking and data entry methods to using something that could optimize their processes and integrate with Gusto.

Bearings Bike Shop

Read how inaccurate time keeping methods forced Bearing Bike Shop to approximate working hours leading to significant losses over the year, until implementing Ximble.

Mermaid Life Chameleon

Needing a simplistic solution to their scheduling and time tracking needs, Mermaid Life didn’t want a solution that would over deliver and overcharge for what they required.

Krein Knives

Outgrowing spreadsheets, Krein Knives now needed a time tracking solution that could accurately track irregular working hours and automate as much of the administrative process as possible.

Garmentory

Looking for automation and simplicity, Garmentory turned towards Ximble in hopes of resolving their time tracking woes.

Novvia

With their eyes set on rapid growth, Novvia needed to implement a scheduling solution that could effectively scale as the business grew while integrating with the existing payroll system.

Story2

Discover how Story2 resolved their time tracking and payroll problems by implementing Ximble into their arsenal of tools and integrating it with their payroll platform, Gusto.

CareCentric Pty Ltd

Spreadsheets lacked the scalability and flexibility that CareCentric Pty Ltd needed as they grew and needed something that would be responsive to their changing needs.

Bou Cou Dancewear

Struggling with varying availability of staff, scheduling for multiple store fronts and managing payroll, Bou Cou Danceware needed a solution to their scheduling and time tracking needs.

Best Pets Veterinary Hospital

Constantly fighting wasted time from data entry errors, outdated methods of scheduling and time tracking were taking their toll. Discover how Ximble helps them overcome their challenges.

Hook SEO

Read how Ximble helped Hook SEO with their time tracking and scheduling problem when they noticed too much time was being wasted on data entry.

National Strategic

After a rapid increase of employees, National Strategic’s dependence on spreadsheets for time tracking was no longer viable. Find out how Ximble solved their problems.

miR Diagnostics

Find out how miR Diagnostics implemented Ximble’s time tracking features for their employees and how it improved their payroll operations through the Gusto integration.

Followell Fotography

Effective time tracking in and out of the office and Gusto integration was important for this photography company. Find out how Ximble stepped up to meet the challenge.

CARP

Ximble provided an inexpensive and user friendly solution to CARP’s time tracking and Gusto integration needs. Find what won them over and how it bettered their operations.

iLoveKickboxing

Discover how the time tracking and extensive feature of Ximble helped improve ILKB’s operations with the Gusto integrations and ximbleChat platform without breaking the bank.

Techpoint1

A tech savvy company that integrates technology into your offices and homes. With their skill and knowledge, they turn your ideas into reality.

Wise Owl Animal Hospital

An animal hospital that combines traditional and modern medicine to provide superior animal care. They raise awareness and provide advice on excellent pet care.

Armstrong Property Management

A property management consulting that specializes in home real-estate. They offer an abundance of services to property owners.

Parsaco

A restaurant consulting company that helps you take your business to the next level. With the best advisors, they can help you expand your business.

Liquid Consulting

A consulting company that strives to become your food processing partner. Comprised of skilled technicians and employees to improve your business.

Alta Animal Hospital

Find out how Alta Animal Hospital do away with printed shift calendars and move to a 100% mobile platform.

Montefiore

Read how Ximble helps Montefiore eliminate the need for multiple spreadsheets and calendars.

Rudy’s Pub & Grill

By utilizing Ximble, Rudy’s Pub & Grill has seen a 60% decrease in missed shift from schedule confusion.

TouchSupport

Learn how TouchSupport was able to manage employees at multiple locations with ease and save 8 hours a week by using Ximble.

Try Ximble for 14 days free

No credit card required. Cancel any time.