Is your price too high?
“Should I drop my price?”
How low can you go?
This edition of Business Sluttery is about a subject very close to my heart! It’s PRICING time!
An important part of Business Sluttery is dropping your pants on price.
Ok, I am speaking metaphorically, and pants refers to your trousers if you are in the US/Canada and to your undergarments if you are in the UK – either way, you should not drop them in most business situations … (I’ll leave it at that, thanks)
Are you dropping your pants on price?
So, here’s the deal.
You have someone who is interested in working with you. You’ve already priced your services to make sure you are paid what you deserve. But the conversation is looking a bit like this:
“Is there anything you can do with the price?”
“I want a discount”
“It’s too expensive”
Suddenly, you might begin to doubt yourself. You might be really feeling the pinch financially and just NEED to take on another client. You might just be starting out and want to build your portfolio.
What happens next? You drop your pants on the price, making it so irresistibly cheap, here are the possible outcomes:
- The potential client decides you can’t be that good because you are too cheap.
- The potential client realises you were quick to drop your price and pushes for FREE.
- The potential client becomes a client and you do amazing work for a lot less than you are worth.
- You start questioning why you agreed to work for so little, affecting your self-esteem and self-worth.
- The business relationship has kicked off on a sour note.
None of that sounds really great does it?
NOTE: Cheap is never irresistible. It leads to suspicion. Think about it – cheap cuts of meat are for the dog, cheap clothes fall apart after one wash… you get the picture. If you are reading this you probably aren’t aiming for this category are you?
What is your business goal?
You need to have a goal. Once you have decided what your goal is the rest is easy, well, kind of.
Do you want to be a huge superstore kind of company, a small boutique, or a haute couture business?
Making the distinction WILL help you establish your position on price (and IF discounts are applicable)
Dropping your pants on price makes you compete on price NOT value
Face it, there are some seriously shameless people out there who will haggle the price no matter how low it is.
I’ve actually had someone (at a garage sale) ask me if they could pay 25-cents for something instead of 50 – I actually GAVE it to them so they’d go away.
Getting into a price debate is often related to value and how you are communicating your offering.
Yes, if you are not effectively communicating what you do the question of price comes into play.
Are you communicating that you are worth what you are charging?
A common problem I see is that what you are selling is NOT clear.
If you are selling something make it OBVIOUS you are for sale, or for hire, whatever word you prefer to use.
Being ambiguous about your services will only lead to more questions and potential time wasters.
Some tips if you have a blog/website:
- Make sure you have a clear page outlining your products and services.
- Get testimonials from previous clients.
- Don’t cram all your testimonials on one page.
- Use your sidebar to advertise what you do.
- Don’t give away freebies, and if you do, don’t make them your core services.
Is your price too high?
It’s possible, but unlikely.
There will always be someone cheaper, AND someone more expensive than you.
If you make yourself irresistible then price won’t become an issue – the client will pay whatever the price because they want YOU.
A lot of people drop their pants on price because they think that’s the problem when in fact, it’s probably somewhere else.
Remember, dropping you pants on price to get the sale will make you look desperate.
You will devalue your offering, yourself and the relationship won’t be a harmonious union for the future.
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