Trying to be “affordable”? Why you need to stop right now.

Are you trying to be affordable?

affordableDo you find yourself playing with your pricing to make your prices appear totally irresistible, or too good to be true?

The thing is, too many people are going on this quest to be affordable and connecting affordability with price. When affordability is all to do with value, specifically perceived value.

I am aware that not every business could, or should, position themselves as luxury and demand high prices but it’s important to ditch the idea of affordability as it’s in your mind and and it’s hurting your business.

How being affordable is hurting your business

The minute you start thinking “My delicious offerings are so affordable, why are the sales not flooding in?” is the minute you’ve fallen into a dangerous trap of pricing games and probable poor business decisions.

Many, in their attempt to being affordable, end up dropping their pants on price (which is never pretty) or they start bundling in oodles of extras to make it look too good to be true.

Note: If it appears to be good to true, it usually is, and if not, the level of suspicion goes through the roof. 

If you go down this route you’ll find yourself working like a dog, over-delivering and probably not making the money you deserve (worst still you could lose money, and YES, I have seen this happen more often than I care to admit).

Affordability is a mindset. Like everything, it’s on a spectrum; what’s expensive for one person is a steal for another. It’s key to know what your target market is and who is actually in your niche so you can set out to compete on VALUE.

The truth is, many of us like paying for a product or a service if we see the value in it. The higher the price, the more perceived value, the more considered and more appreciated the purchase is.

How to break the affordability trap

  • Focus on how your delicious offerings help your clients/customers.
  • Make it easy for them to trust you and understand how you can help.
  • Know your worth and the value you provide.
  • {My favourite} Raise your prices with style and class.

Your turn:
Are you guilty of trying to be affordable? How do you get over it?

 

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10 Responses to Trying to be “affordable”? Why you need to stop right now.

  1. Spot on (as usual), Ameena. Affordability is overrated. And if you’re fighting for the prize of being the ‘cheapest’, what happens when your competitors lower their price? That game does not end well!

  2. Fortunately I’ve not fallen into the trap of trying to be “affordable.” I’ve fallen into plenty of other traps but not that one!

    I agree 100% that affordability is a mindset. And when you find those clients for whom what you’re offering feels like a great value and you’re confident in your (not too low) pricing selling becomes remarkably easier.

  3. “dropping their pants on price” … I like that 😉 So true.

    When I first started my business eons ago 😉 I did this. Sometimes we have to take any and every job when we start out, but I kept that price “flexibility” even after I had a fairly healthy client list. Every time I worked with someone focused solely on price … the end result was never good … this was about 99.9% of the time 😉

  4. Hi Ameena!
    I’ve just raised my price on my Reiki healing treatments 😉 This will be fun. I’m just putting it out there – the site will be up soon – and I’m quite sure the price will go up again. I know what I’m offering and it’s exciting to see who I attract with it!
    Price is always a challenging issue. I’m happy to see you tackle it face on. Affordable? Not for some, maybe, but WORTH it – you bet! 🙂
    Lori

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