How to stay competitive in the market without compromising my price too much?

Ask Me Anything Q&A Prisyncama
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I work in the custom wedding industry, where pricing varies significantly among businesses. I’m confident in the quality of my product, but I hesitate to price it the same or higher than major competitors because I don’t want to risk a sudden drop in customer traffic.

I’ve experimented with raising and lowering my prices a few times to gauge the impact on sales, but it’s been difficult to determine whether fluctuations are due to pricing changes or seasonal demand. For context, I typically receive about 15–20 orders per month, so any shifts feel unpredictable.

Given this, I have three main questions:

  1. What are some effective ways to test pricing to find the optimal price point that maximizes revenue?

  2. How can I ensure that pricing tests are controlled and that order fluctuations aren’t just a result of seasonality?

  3. If I raise my prices and potential clients choose my competitors instead, how should I approach this? Should I accept that and wait for more suitable clients, or should I adjust and lower my prices again?

I’d appreciate any insights or strategies you can share!

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I hear this a lot. Given your industry, price tests at that scale (15-20 orders per month) may mean sudden drops in return, making testing things almost not worth the risk.

You’re right to gague things with traffic - before orders - there because since that would be a lot more in numbers, here’s what you may measure - instead of how that 15-20 changed.

Say you changed your pricing in any direction:

1- How did your traffic change - from Google or likes of other channels where your competitors are also bidding for clicks?

2- How did those clicks you got, i.e., the traffic convert?

3- How did your organic traffic conversions change?

So instead of just looking into the changes in the final level, i.e., orders, spotting changes (good or bad) on higher levels, i.e., traffic/conversion could be a wise move.

To make your tests controlled, I think you may consider A/B testing your prices so you may try different prices around the same season and compare the outcomes.

And in case you lose business as a result of a pricing test after increasing your prices, I don’t think keeping them at the same level and waiting for a new clientele to show up and buy would work—unless you also work on that side of your business, i.e., your positioning and ideal customer profile.