- Posted by Veronika M.
- On October 19, 2017
- 0 Comments
I have never had a client who charges too much for their services or products — typically they do not charge enough for the value they bring to their customers or clients. Many business owners do not have a good relationship with money which affects their pricing strategy. When analyzing the success of a business and formulating the best strategy to grow, pricing strategy has to be at its center.
Many business owners undervalue their products or services. Yes, you should know your competition and their pricing; however, it is not as important as you think. It is more important to know your niche and understand your ideal client and customer demographic. You should base your pricing strategy on the value you bring to this customer. Pricing should not be based on cost of good but on value, customer service, and what you bring to your customer that your competition does not.
Do not low-ball your competition to gain those customers who do not want to pay the ticket price. That might just mean that they may not be your ideal customers after all. Low-balling gives the impression that you are not confident of the value you bring to your customers. In my experience, sticking with the ticket price that reflects the value of your services attracts the customer you are targeting. Remember that it is also about perceived value and low-balling may tell your ideal client that you are not providing the value he or she expects.
Be confident in your pricing strategy so that you can talk or display your prices without hesitation. If you do not show your pricing online, you are not competing with your competition that does and you can not participate in the pricing game. Customers want to know–and statistic show that they do not chose the cheapest price most of the time. Cheap prices equal low value.
Setting your pricing for what the market can bear will allow you to not only grow your business but give you the breathing room to create better strategies and focus on what is working. It can be your game changer!