Why You Should Set Your Price
We all want more sales, I think that we all do. Yet, sometimes, we forgot to consult with our actual recent clients on their actual experiences with what we think is normal business practices. And, if we do not, then we create a whole new set of amateur practices for ourselves. Why You Should Set Your Price
Ok, so you want more sales, well great, that means you need to start generating more business. When you have sold something to a client, you should always conduct a satisfaction survey after the project was finished and you sold them something. Why you ask? Because, someone is actually considering and considering the purchase of the decision, it does not just happen, it happens because you have made a decision. Now, when it comes to the continuation of that relationship, if you have violated the highest of standards of your business standards, well, for the time being, you will never be able to regain those sales in your business, and you will lose them forever.
Often, business owners set their prices before they know what they are dealing with when selling services for high dollar. Now, this does not mean that you should not set your prices, but if you do not set them high enough, then you are just setting yourself up for disaster. Your prices should be set for their perceived value that you create using your value creating skills and the experience you have created with your clients. However, if you set them too low, they will no longer value you. Let me ask you a really in depth question; did you believe that you were overpricing for some time, until all the other businesses started coming to you and trusts were fulfilled and you had gained more clients? Or, were you charging what you were worth what you believed you should be charging and you found out that you were only charging “what ever you can get away with?” or “I am good I will ask for it” or “I am setting you a price and you can tell me what it is…”? Why You Should Set Your Price
Let me tell you this, business owners are being very foolish and they are leaving a ton of money on the table, because they are not setting their prices correctly. Anyone who has come near a client will tell you that saving $50 to $100 a day on average will be far more beneficial than a one time price visit, because you will never be able to recreate that experience until some one else is trying to duplicate it, never will people be able to duplicate you or your value creating skills.
Indeed, I have mentioned this situation in my book, “Screw the Participator Rule”, yet, I bring up the subject of a pricing problem simply because this is so important. For this phenomenon as mentioned in the book, my book merely states just one of many situations where many businesses are doing pricing based on “what I can get.” Which basically means that they are selling services for someone else’s price, and they are never willing to share expenses, never will they allow others to get more out of you or what you are worth to them. Did you know that, you could work for free off of their customer list once a year for a year, or whenever you need 15 to 20 minutes that you can save, but these factors still apply to your calculated pricing.
There are many business strategies that will help you find what value you are worth, and I hope you will consider these strategies when you are determining your price to new and existing clients. Why You Should Set Your Price