It's all a struggle!
Mar 08, 2016
Price is one of those areas we all seem to struggle with. If we don’t get it right then it makes it difficult to get enough profit. AND not because we’re too expensive..... that’s rarely the case!
Normally it’s because there’s just not enough profit margin for the quality of service or product (and the quality customer service) we give. If you’re doing things right and solving your customers’ problems then you’re more than likely taking longer to service your customer than you think.
Being the best takes more time than being mediocre, so don’t fall into the trap of pricing like a mediocre business. This can be what gives your potential (or even existing) customers the idea you’re just the same as your competition down the road.
If you’re apologetic about your pricing or not confident, then this show when you tell someone about your price. They will assume you’re trying to rip them off, and they’ll be very likely to ask for a discount. If your customer chooses you on price they will probably leave you on price too.
Here are five tips to getting your pricing right:
1. Make sure you’re very clear in your own mind about how much your time is worth and the value you bring to your customer.Many customers can tell when you don't feel confident about your prices and will sense there's something wrong.
2. Be prepared for price objections and ensure you let your potential customers know the value you bring over the competition. If you’re no different from your competition then why are you in business?
3. Don't assume your customers buy purely on price. When was the last time you bought something on price? I can tell you when I did... it was petrol. I choose to get my fuel from the supermarkets because it’s cheap. As far as I’m concerned there’s nothing different to choose between different ‘brands’ of petrol. Don't turn yourself into a commodity.
4. Give your customers choice. Pricing experts believe between 15-20% of the population are programmed to always choose the most expensive option. If you don’t offer a choice then you could be doing your business a disservice (and losing out!)
5. Watch out for discounts. Hidden discounts can cause havoc in your business. If you give discounts make sure you measure how much you're giving away.
I'm running a webinar on discounts and running the numbers to show the havoc it can bring to your business. If you'd like to pre-register your interest then send an email to email@example.com