This is a guest post by Dina Eisenberg. It includes some valuable info, a free offer, and a short survey request. Thanks to Dina for sharing this.
Hands down - pricing is the most puzzling of the 4 P marketing mix. (That’s product, price, place, and promotion.)
In fact, finding that right price is like searching for the holy grail. You believe it’s out there, you search and search but it’s always elusive, just out of reach.
The Pricing Puzzle
Pricing is a veritable see-saw.
Charge too much and watch your sales plummet. Charge too little and you get a flood of sales that bankrupt you because you lose money on each one. You see the problem.
So, how do you find the right price for your services and products? Study.
If you want to increase your sales and profits, get better control over your cash flow and have enough money to grow beyond where you are now, it’s time to start learning about the wonderful world of pricing strategies and models.
Oh joy, you say. I understand. It’s not the sexiest part of being a small business owner, true. But mistakes are costly - in time, money and motivation.
Most entrepreneurs fail to see pricing for what it is - a meaningful marketing tool - and make one of these three damaging mistakes around pricing:
- Poor attitude about pricing
- Self-imposed limits and fear-based pricing
- Ignorance of pricing strategy and selling techniques
Maybe you see yourself on that list. If you do, then you’re profits aren’t as good as they could be. Good news is, increasing your pricing savvy just a bit can mean thousands more dollars in your pocket each year. Let me give you an example.
Mistake #1 Taking a ‘what I don’t know won’t hurt me’ approach
Meet Sue, a friendly coach who charges $80 per session. Grateful that her prices helped get her first clients, she hasn’t raised them in years. Sue is certain that she’ll lose her ongoing clients if she raises her prices. Sue knows she should make a move. Yet, she has no idea how high to raise her fees and worries constantly what prospects would think of her if she dared to ask for more.
What Sue doesn’t know is causing money to leak out of her business. She'd be able to raise her prices without a single complaint or worry, if she was aware of pricing tactics.
The solution is Baby Step Pricing. Otherwise known as incremental pricing. Taking a teeny, tiny price increase that benefits you but is barely perceptible to your client.
Speak up!
Sue could raise your price to $85 easily. Why? Five bucks more isn’t that much to pay, right? It’s definitely inside her customer’s comfort range. Especially when the benefits of working with Sue would easily be more than that. A nearly invisible increase that isn’t negatively perceived. Imagine what that would do for you.
Best part - Sue’s income gets a nice boost. Sue normally earns $2400 a month when she sees thirty clients. After the baby step, Sue would earn $2550 per month, an extra $1800 annually. That’s found money she can use to attend a conference, buy a new computer or give herself a bonus! Rinse and repeat as needed.
You can find those ‘low hanging fruit’ profits in your business, too.
Making mistake #1 doesn’t mean you’re stupid or lazy. It makes you human just like the rest of us entrepreneurs. We all fear the unknown, right? We all crave being liked. No one likes to be judged. Totally understandable. Just know that if you do nothing, nothing changes.
Deciding to be curious about pricing, learning at your own pace, is the first step towards claiming your hidden profits, skyrocketing your confidence and getting a nice big slice of peace of mind.
Get started already - 5 More Mistakes Special Report - Free
Start by fixing your pricing mistakes. As humans we are hardwired to pay attention to mistakes. (You can get 50 compliments on your website yet be totally obsessed with the one person who didn’t like the colors.) Start where your thoughts naturally go, I say.
I’m happy to share my special report with you: 5 Mistakes that Keep You Poor. All I ask is one small favor in return:
Please click to take my short survey here. I’m working on a pricing product right now and want to be sure I address everything that’s important to you. I’ll be the only one who sees your response but many fellow entrepreneurs will benefit from your thoughts.
I’ll thank you by sharing the link to the free report at the end of the survey. A real win-win!
Thanks again for taking the survey!
This Guest Post is by Dina Eisenberg, JD - Author, Speaker, Producer
Dina produces content essential to emerging entrepreneurs who are determined for success yet sometimes struggle with speaking up powerfully. Her books and coursework offer the insight and skills to transform yourself into a confident, fearless business owner who attracts your best clients and does your best work worry-free. To find out more about the current courses, you’re invited to visit her blog at The Speak Up Revolution.
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