A couple of weeks ago, I talked about price.
To my surprise, it proved to be one of my most popular articles, EVER. I received lots of comments regarding the practicality of the message and at least one colleague has put up his prices dramatically.
If you want to read the full article, go here…
But to recap…
One of the biggest issues that we find clients struggle with is price. And by that I mean putting it up.
And every time we talk about price, the same objections come up.
“My customers won’t pay this”. “I’m already at the top of my price category”. “My competition only charges X – so how can I justify so much more”. “I’ve already sold to everyone I can at this price”. And the list goes on.
But it’s all in your head.
The only barrier to price is YOU. What’s between your ears.
To put it bluntly. Your competition doesn’t set your price. Comparable services don’t set your price. Past experience doesn’t set your price. What your father sold when he owned the business doesn’t set the price.
Nothing has anything to do with it other than you dictating what the price will be and whether the market will respond when you put the price in front of them.
So set your price and test it. In most cases you’ll find a market for almost any price.
Don’t believe me? Here are a couple of examples (somewhat outrageous, but true never the less)
You could buy a pair of shoes for $49 or Nike’s Air Force 1 sneaker. If you’re absolutely dying to have one, the luxury edition - in anaconda or crocodile skin, complete with 18-karat-gold shoelace tips, can be yours for a paltry $2000 (USD).
Of course you could spend $50,000 on Diamond-Encrusted Custom Nikes or Stuart Weitzman’s Rita Hayworth Heels - Price tag: $3,000,000.
Go here http://www.pastryshoescollection.com/2009/01/06/top-10-most-expensive-shoes-in-the-world/ and you’ll see examples.
And coming back to our client who took our advice and decided to put his prices up from $5,500 to $6,997… I’m happy to report that he’s making sales at the new price.
And finally, I was hoisted on my own petard when my own business coach waved my own newsletter at me and raised her fees – to me! What cheek! J
So your mission, should you choose to accept it, is to raise your prices and test the market’s resistance. You might well be surprised at what people will pay.
And my offer to you…
Raising your prices has more to do with your own money thermostat than anything else. Many a time I’ve had people sitting in front of me who said, “I can’t charge more than $X” only to find they could smash through this barrier after I’d helped them articulate the value of their services (more to themselves than anyone else).
So if you feel you need some external validation to justify your price rise, give me a call on (02) 9499-7958.
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