Orangeville, ON (James Doan) Don’t commit one of these 5 common pricing mistakes:
1. Pricing your services in the same manner as everyone else. When most folks go into business, they look at all the others in the business. They examine their contracts and what they are delivering. Then they model THEIR services after what they see. What they don’t realize is that what they’re doing is building a commodity-base business. Their service looks, sounds, acts and costs like everyone else’s. Then they wonder why they get shopped on price. Dumb.
2. Marketing to prospects who cannot afford your services. Some people cannot afford to buy what you’re selling. So STOP marketing to them. OR figure out a business model and service where you can still profit from what they can afford.
3. Not being able to give prospects logical and enough reasons why your services are worth more. Here is where positioning yourself in your marketplace is imperative. Your marketing methods should position your company as the only expert company around.
4. Not having a PREMIUM-priced version of what you sell. You should be using a Goldilocks pricing strategy. Offer two to three price points so the prospect has options. If they choose the cheapest, give them the ability to upgrade down the road.
5. Negative, emotional beliefs about asking people for money. Most of the “price” issues we see in business stem from not having the confidence to ask for higher prices. If the company is properly positioned as an expert, customers expect higher pricing and are not likely to haggle.