How Pricing can keep you from Pricing
Small Business Owners
Pricing your product or service is one of the most difficult things that a small business can and will do.
- Do you match your competitors?
- Do you beat your competitors?
- Should you be more expensive?
How do you value your time spent? - What are you worth?
- Should you be cheap in the beginning?
- Not raised your prices in 5 years!
- The customers won’t pay any more!
- My customers will go somewhere else!
- Everyone else is pricing like this!
For those businesses that still aim to battle on price, you are in for a ride to the death of your business.
Starting business
If you are just starting out and you believe you need to be the cheapest – you will go out of business. It will become the fastest race to the bottom. You do not want to attract customers purely on price, as they are not loyal customers.
Existing business
For those that always battle with price and still manage to stay afloat, you will wonder why you have little to show. You won’t be able to afford new equipment, to pay yourself properly and will constantly tread water. Shortcuts and bad service will become standard and your business will ultimately fail.
Ask yourself
- Who is my ideal client?
- What are they missing?
- What is their biggest need?
- Does my business deliver an outcome people desire?
- Am I solution driven for my clients?
- Is my customer service worthy of repeat business?
- What is at the heart of my business?
- How do people find my business?
- How do I interact with potential and existing customers?
- What do people think about my business?
- What do I want people to think?
So – How do you price your product or service?
You must always price on the value/benefits that you provide and consistently deliver. Yes, it is that simple!
It does not matter what stage of business you are at, a regular review of your pricing strategy is essential. If you enjoyed this blog – make sure you subscribe
In the wise words of Seth Godin:
Maybe your customer isn’t trying to save money
Perhaps she wants to be heard instead.
Or find something better, or unique.
Or perhaps customer service, flexibility and speed are more important.
It might be that the way you treat your employees, or the side effects you create count for more than the price.
The interactions in the moment might be a higher priority.
Or it could even be the sense of fair play and respect you bring (or don’t bring) to the transaction.
Price is the last refuge for the businessperson without the imagination, heart and soul to dig a bit deeper.
