Your Pricing is More Than Just a Number
As a business owner, you need to consider how you are pricing your offers. Presented here are business pricing strategies to consider that may help you to work through the challenges of setting your business pricing. Note this strategies are particularly useful for service-based businesses.
Business Pricing Strategies: What NOT to do
Don’t cheapen yourself
While it is tempting to think of client-is-a-client – you are making you and your business appear as just another off-the-rack offering. If you truly offer a special service (and of course you do because of who you are) then this must be communicated to your potential client. Therefore, presenting an “anytime, anywhere” approach will lessen the importance of what you have to offer. This is also communicated in improper pricing strategies.
Don’t worry about what your competition is charging
They likely have a different business model than you and even if they don’t, what they offer for what price is likely different. Focus on you and what your business needs and you will be much more successful.
Don’t ask your client what their budget is
If you are a “real” business person, your pricing requirements should reflect your business needs. What budget that people have to hire you for your services is not what is important. It also places them in the driver’s seat to dictate to you what they can afford when it should be what value you deliver.
Don’t trade “dollars for hours”
This is a model that is sure to cause you to undercut your services and result in haggling with clients for what exactly you have done and how long it has taken you. You don’t want to be subject to such specific criticism. After all what difference does it make how long it takes you to perform a service – when results are all that matter.
Business Pricing Strategies: What TO DO
Invest in quality
Although it seems obvious, many smaller business owners do not consider the quality of their clients as important, but rather they focus on quantity. As with anything, you are working to get to those whom really, truly need your services and will be repeat business. How do you find them? You must spend the money to advertise to find them. You don’t want those only looking for the free or lowest cost option.
Show your results
Have your clients understand what results that you provide, not the length of time or the process for getting there. Let them see client reviews and explain to them what results that you have achieved for your clients.
Find the right clients
At the end-of-the-day, you don’t want to work with everyone. There is no possible way that you will appeal to all potential clients and frankly, you don’t want to! Therefore, have a method to find the right clients. They will become a good client and hopefully will provide repeat business and referrals to your business.
If you exude the confidence that you should, your clients/customers are likely to understand the value of what you have to offer. You must respect yourself and what you do – if you don’t then re-engineer your company and your life so that you feel this way about yourself. As in the old saying “believe in yourself utterly to have others believe the same.”
Although these are certainly not the only ways to determine your pricing. They are intended to give you a general approach that will help you to work towards adapting a different mindset.
We hear from so many business people about the struggles they have setting their business pricing, particularly in service-based industries. If you have a proper pricing strategy, you will notice the revenue-generating benefits of it!
We can help you with your pricing:
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