Are you a Maserati or a Kia?
When I meet with new clients, I often start out with a car analogy.
In your business, you can be a Maserati or a Kia. What do you want to be?
Everyone says Maserati...but their actions say Kia!
What do you do if you hear the following from a prospective client?
"I can't afford those prices!"
Have you heard that before from a prospective customer? If you're a business owner, you most likely have. Unfortunately, what happens next can lead to a downward spiral for your business.
Yup...the D-word - Discount!!
Imagine this scenario:
You have a price for your package and while you sit with a prospective new client, the Price Devil on your shoulder starts whispering in your ear.
1. You should offer a discount because you're new!
2. You can't charge that much, you're not Oprah!!
3. What if you worked for free and then charged them later once they see how awesome you are?
You start out with a number...in your case it's $1,000 for your 2 month package. Then the Price Devil convinces you to lower it because of the three reasons above. So in your head, you offer $500 and the whole time you're hoping they say yes. Like asking the coolest person in school out to the Prom!
Has this ever happened to you?
If you answered yes, you're not alone...it happens to everyone...including me!
It sucks to be in that position. That line of thinking and positioning can ruin your business...quickly.
Pricing your services too low just to get the sale is one of the biggest reasons small businesses fail.
Sales are the life blood of a business - I don't care what kind of business you have.
The reality is the price of your products or services are just as if not more important than sales.
Here's a quick example:
Rachel charges $50 per hour for her spiritual consulting services for a 2 hour package.
Sara charges $100 per hour for her spiritual consulting services for a 2 hour package.
Both services are very similar except for the price.
They both want to earn $1,000 per month and to do so:
Rachel needs 10 clients at $50 x 2hrs = $1,000
Sara on the other hand, only needs, 5 clients at $100 x 2hrs = $1,000
In other words, Sara does half the work (and clients) for twice the revenue. More importantly, there is a positioning difference between Rachel and Sara.
Which one is the Maserati and which one is the Kia?
Which coach, consultant, photographer or freelancer would you rather be?
Rachel or Sara?
What if you could grow your clients faster, find higher quality customers and raise your revenues?
The reality is you can charge higher prices without losing existing customers and getting new ones in the process.
Pricing your services the right way does that for you....it also positions you as an authority in your field!
Think Maserati vs. Kia.
Do you want your business to be a Maserati or a Kia?
Both are great cars...but you know the difference in terms of positioning!
I know you want to learn how to set and raise your prices. I hear from hundreds of business owners every month looking for strategies to raise their prices.
Setting and raising your prices are a culmination of mindset, value and number.
I'll explain further... if you hear a prospective client say:
"I can't afford that! or Let me think about it!"
It's a mixture of:
a. The prospect's inability and availability to buy from you.
b. The prospect doesn't believe you can solve their problem at the price you have.
c. Their mindset about the value is limited. For example, your price may be one of the largest purchases they've ever made so it's hard for them to distinguish the value you provide.
If you address those questions and concerns you can raise your price and charge more. Your customers will thank you because you've alleviated their problems and they believe you can solve it.
If you want to learn more about how I help small businesses set and raise prices, you can check out bit.ly/RaiseYourPrices!
I'm showing a large audience the four steps I've used to set, raise and expand your prices!
How did you raise your prices and what has been your biggest resistance to raising your prices?
I'd love your thoughts and comments below!