CHOOSE A PRICE FOR YOUR PRODUCTS AND SERVICES
This is perhaps the most interesting part of a customer’s perception of your business… Once you have decided where you want to position yourself in the price market, it will be very difficult to change. Remember that once a potential customer believes something, it’s virtually impossible to change their mind. When a customer complains about the price, you simply haven’t shown them enough value for the price you’re asking. You should be proud of your prizes!
“Yes, we are the most expensive, but let me tell you why…”
If you are known to be the cheapest company in your market, you will never be associated with high quality or great service. If you walked into a car dealership and saw a BMW for sale for the price of a Kia, you would be wary and wary. Something is wrong for its price to be so low. The reverse is also true… If a Volkswagen were for sale at the price of a Mercedes Benz, there wouldn’t be many takers.
Several years ago I had a riding mower that I decided to sell, so I put it online asking for $50. It had seen its best days, but it still ran and cut the grass very well. I just didn’t want to be bothered with the hassle of trying to sell it. A week passed and not a single call. The second week passed, nothing. By week three, I started to realize what was going on and raised the price to $200. BAM! The calls poured in and I got the asking price. At $50, people thought there must be something wrong, and so there were no takers.
What are you worth? More importantly… what do you want to be worth? When you work for yourself, like many of us, you have both the joy and the angst of deciding what you’re worth to someone else and finding ways to communicate that to clients. potentials. If you want to be known as the guy low on the totem pole, which I hope no one does, you will never be known for delivering the best quality or the best service.
We always expect to pay more for good quality and great service. No questions asked! When you want to go out for a nice meal accompanied by soft candlelight and romantic music, with a selection of gourmet wines and hand-carved chocolate bunnies for dessert, you will pay extra. We call it selling the “sizzle with the steak”! When you want something quick and easy without all the glitz and glamor, you’ll pay a lot less.
How do people perceive your business? Are you the intimate little bistro where you expect to spend $200 on a great meal, or are you the drive-thru where $4.95 will get you the works? More importantly, where do you want to be in the future? If your price is too low, people will associate you with poor quality, poor workmanship and poor service. There will always be plenty of bargains at the bottom of the pile, but that comes at a very high price!
Customers do not pay us for the cost of our time, or the cost of the products or services they pay us for the value of our time and the value we bring to their lives. If we show up 10 minutes late to a meeting wearing flip flops and a T-shirt, it shows the client that we don’t like each other very much, so why should they expect them to like us? If you want to be a Cadillac, act like a Cadillac, dress like a Cadillac, and project a Cadillac image!
If people like you and recommend other people to you, that has huge value! This means there is a demand for our time, which means we can charge more for our time. Your prices should be based on what the market will bear, not on your expenses.
If your prices are too low, it will drive people away. It’s not that our customers won’t pay our prices, but rather that we’re afraid to charge what we’re worth. I’m not saying you need to increase your prices to the max tomorrow, but you need to be fully aware of your current price position in the market and have a well-defined plan of action on where you want to be in the future. . . If you want to position yourself differently on the road, start making changes TODAY that will set you on the path to success.
Don’t wait another day to make the changes necessary to ensure a better future!
Written by Mitche Graf.
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