One of the issues I've run into time and again with my family's business and those of some of the friends I chat with is pricing. While it's somewhat easier to define a retail price for products sold in a brick-and-mortar store thanks to the "suggested retail price" offered on invoices by many wholesale distributors, creating a rate list for a service-focused business is more difficult.
One of the things to keep in mind is, of course, your overhead. If you are operating a home-based business and your primary means of communication with clients is via the Internet, your overhead will normally be lower than the office-based individual who must deal with fees for their lease, utilities and commuting costs.
Having low overhead offers you several options. First of all, you can use this opportunity to offer your end consumer better rates on the products/services you offer, which can lead to more referrals and repeat customers. You also have the opportunity to heavily discount one or two products and keep the others at a standard rate. Everybody likes a bargain, right? The thought here is also that discounted rates will draw attention away from your competitors and pull the business to you. Similar to the "loss leader" method used in traditional retail, this hooks the visitor and gets them to browse around for more...or if you're doing a "buy two, get one free" e-book sale, you may find that a buyer who normally would only select one title will spring for a second one just to get that third freebie!
Such sales also offer excellent marketing opportunities. How often do you see local grocery and drug stores marketing their loss leaders? (Yes, that was a real question. But yes, I know you at least see them in the paper each week.) As with using press releases to get your name out to the media, items on sale are a "reason" to make contact with your customers, current and potential. Sitting around waiting on business? Send out postcards or emails offering lovebirds a 2-for-1 Valentine's Day discount on your organic massage and bath oils. Headed into the month in which you started your bookstore 3 years ago? Time for an anniversary sale, complete with coupons for a free paperback with the purchase of a hardback, or a 15% discount on all business books.
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