Why “lowering your price to make it up in volume” is just plain crazy and not something that will keep you profitable!
I see it time and time again…entrepreneurs struggling to make money, frustrated at the clients they are attracting and down-right pissed that all the hard work they are putting in is barely able to keep the business afloat.
Yet, they are afraid of how people will perceive them if they raise their prices. They know darn well that they have to do something…so they end up doing what every other business does…
…lower prices and make it up in volume!
Seriously flawed thinking! But unfortunately that’s what some so-called business gurus tell their clients. “Just make it up in volume!”
So not only will you lower your price in hopes of attracting more clients, but now you will be working twice as hard to make money.
Honestly, that is probably the worst advice anyone can give you. Why the heck would you want to work twice as hard for less money?
Instead of lowering your prices…raise them!
Be proud that you raised your prices.
Tell the world that your prices are going up.
Did you read lately about Disney raising the prices at their parks again? They just come right out and tell people that the prices are going up. Oh, yeah a few people complain…but it doesn’t stop people from showing up. Nope, the Disney Parks are more crowded then ever.
Maybe you’ve heard me say this before or read it in one of my articles or my books…if not here it goes…
“The lower the price the more hassles involved!”
When your prices are low, you attract people that have very little money. Those people tell other people about your low prices. Sadly, those people with little money, don’t value your time, don’t see your true worth, nor care whether you stay in business and are rarely ever loyal to you.
Why deal with the hassles for little money?
Eliminate the frustration by raising your prices!
Yep, raise those prices.
Some will dislike your new pricing but you do it for these 5 reasons…
- It weeds out time wasters,
- It eliminates those who just want a cheap price,
- It allows you to reward your employees for the hard work they do,
- It grants you the opportunity to give back to the community and
- It ensures the business stays profitable.
This is something I preach to my clients every single day…some get it, some don’t.
Those who don’t raise prices tend not to stay in business too long.
Those who finally raise their prices, soon realize they should have raised them long ago…as it helps transform their business into a long lasting enjoyable venture.