How many times have you lowered your price in hopes of getting work only to have it backfire and cost you more time and effort?
I would venture to say…more than once!
It’s downright frustrating!
And yet, I see the same entrepreneurs over and over again using low price as the attraction mechanism to try to bring in more clients.
Hey, I’ve been there and done that…and it cost me.
And every time I broke my own rules and accepted a client that couldn’t afford my price, by lowering the amount they would pay, it came back to bite me hard.
As the image above states…
The Lower The Price The More Hassles Involved
So why not get the right clients paying the right amount and have clients for life, instead of struggling with attracting low paying clients who will just suck the life out of you.
Low price is NOT a factor to win trust with anyone.
Usually those who want a low price don’t have any money, don’t value your expertise and seldom will become a long term client. They believe that the little money they pay you should somehow return to them 10x what they paid you in value (sales, product, whatever) so they can continue paying you very little over a course of time. And, when that notion doesn’t work, they blame you for not making them money.
They treat you like a commodity.
And what’s worse…is they tell everyone they know what a great deal they got using your service. So now you are spinning your wheels dealing with a vicious cycle you can’t get out of…unless…
…YOU raise prices.
Yep, higher prices are more of a credibility and authority builder than lower prices are.
Trust Creation comes in many factors and yet low price isn’t one of them.
A higher price tells people that you are more experienced, well trained and know the true cost of doing business. And people that are willing to pay higher prices are more loyal, refer you to like-minded individuals and treat you with respect. Goes back to credibility and authority.
Unfortunately, I hear from some entrepreneurs that they can’t raise prices for fear they would lose their existing client base. If they only understood the power raising prices will actually do for them.
Did you know that by raising prices just 10% you could lose 17-20% of your client base and be no worse for wear. Yep, and most likely those 17 to 20% of lost customers would be the biggest complainers.
Yet taking the low price route…if you lower your price just 10% you will have to work 25% harder to make up the lost revenue. Do YOU want to work 25% harder? I doubt it.
So why do I share this great information?
I share it because I feel too many entrepreneurs get sucked into the notion they need to compete on price in order to attract clients. They see what their competitors are doing and try to mimic price to stay competitive. What’s to say your competitor wasn’t basically guessing on his price? Possibly not knowing how to figure his true cost of doing business he gave it a WAG (wild ass guess) and now you are copying his lack of intelligence.
Building trust should never be based on a WAG or a low price!
When you are ready to discover more about Trust Creation and the impact it can have on positive sales give us call and we’ll be happy to get you started.
Rob is affectionately known as “Mr. Sarcasm” to his friends - to everyone else he’s a Certified Digital Marketing Strategist, a Foremost Expert On Specialized SEO, a Best Selling Author, Podcaster, Speaker and Authority Broadcaster who can help amplify YOU to your audience.
Rob has authored, coauthored or produced over 36 books covering social media, search engine optimization, podcasting, copywriting, personal injury law, weight loss, military law, life lessons, scams, sarcasm, customer service and more. His book clients include lawyers, speakers, doctors, real estate professionals and more.
Rob is also host of The E-Heroes Interview Series available on Apple, Amazon, Google Play, Stitcher, Spotify & many other podcast channels. Rob works inside corporations across the globe, helping companies generate new revenue and capture online business.
Rob is also available to share talks and give interviews. To learn more and to get started visit www.AnspachMedia.com or call Anspach Media at (412)267-7224 today.