What actually happens when you reduce your prices to increase your sales?
Reducing your prices in order to win more work is easy. Anybody can do it! But do you know what damage it causes to your business?
Ask yourself this: What am I trying to achieve by lowering my prices?
I bet your answer is to generate more business and make more profit. Right….
Well you have the first part right, you’ll get more work (a lot more work). But your profit and your business will suffer drastically!
What you end up doing is attracting the wrong type of customer. You attract the customer who is driven solely on price. They have no concept of the meaning of value.
Customers who are driven by price, wouldn’t buy what you offer if they had to pay full price.
These customers are much higher maintenance than those that will pay full price for your service. They end up taking up more of your time, causing you more stress, and paying well under what they should. They’re the customers that make you question why you bother.
Aside from that, in letting them have what you have to offer for a significantly reduced rate, tells your customers that do pay full price, that they are being overcharged….so they then stop paying full price.
The customers you attracted with your lower prices, will leave you as soon as you put your prices up. They have no loyalty to anything other than a bargain, you won’t build a successful business supplying bargains.
By attracting customers using reduced or industry standard pricing, you are killing your business.
Are you Average?
Of course you’re not!
Nobody goes into business to deliver a mediocre service or product, and you’re no different.
So why do you charge an average price?
Overcoming this problem is not easy, but it is doable if you are prepared to think about it and build value behind your service.
Sell the value, not the product.
The 2 things that set your businesses pricing are:
1) Your customers perception of what the price should be;
2) Your perception of what the price should be
The hardest perception to break is yours, not your customers.
The sooner you manage to completely disconnect price and product in your own mind…
The easier it is to make a lot of money.
I know this is easier said than done.
But it is possible.
Is your price attracting the best possible customers for you?
Have a great week, – & if you want to make rapid progress implementing a SYSTEM to generate all the customers your business needs consistently & predictably, so you don’t have to reduce your prices, then drop me a message, send me an email, give me a call… Just reach out and let’s move your business forwards!