Become Reassuringly Expensive
When someone is enquiring about your services for the first time, they may ask “How much do you charge?” But if you tell them, the focus is just on price.
A buying decision is generally an evaluation of the Value/Price ratio, often expressed as Return on Investment. However, for many services, the return is an intangible.
How much more beautiful will a beauty product make you look? And what is that worth?
If you start with value and ensure that the buyer fully understands the benefit they will receive, even if it is intangible, that is where their focus will be even after you reveal the price.
But, what about your competition?
When we look at our competition, the first thing many think about is their price. Are they undercutting us? Yet Price is the fifth reason that people use to make a buying decision, behind the following factors:
4. Selection or range of offers
3. The level of service you provide
2. Quality of the product or service
1. Confidence that you can deliver
If your competitors focus on price when you are focusing on the other factors, you aren’t actually competing with them. Your products and services are different. Your customers are different.
You may lose some customers when you do this, but they will be of low value, the price shoppers. Of course your marketing strategy must change, but you will have more time to pursue the higher value customers rather than chasing your competitors to the bottom on price.
The only way you can make money being the lowest in price is through volume. A lot of large businesses are successful with this strategy (eg supermarkets), but have very sophisticated cost strategies. But if this is not your strategy, become reassuringly expensive instead.
In other words become a Price Maker, not a Price Taker.
In Price: How to charge more without Losing Sales, I reveal 57 ways you can do this. Listen to an interview with me HERE where I reveal a few of these strategies.
May Your Business Be – As You Plan It.
Dr Greg Chapman – The Profit Whisperer
Learn more about how these marketing strategies would work in your business when you request a Free Preview copy of the best selling Small Business book; The Five Pillars of Guaranteed Business Success
Or find out how to directly apply and implement these strategies into your business and achieve your goals by requesting a Complimentary Business Evaluation now.