Do you often get the temptation to revise your pricing down because your market thinks your prices are too high? Does your market think you’re too expensive? Do you almost get a deal and then sit to see it crumble away when the pricing negotiations start? Think of the following before you rush to ‘under-price’ yourself out of business.
Your prices could be too high or alternatively:
- You could be targeting the wrong market.
- Your advertising could be reaching too few of the intended target.
- You could be expecting your prospects to make a decision, without providing the key information about your product or service.
- You could be peddling the exact offer being offered by your lower priced competitors.
- Your marketing could be failing to clearly demonstrate your value, thus making your prices seem high.
- Your marketing could be flat and similar to the mediocrity standard that makes noise without communicating, let alone converting. This is dangerous and extremely common.
- Your brand position (in the mind of your marketplace) could be in conflict with your product offering, presenting you as a lower priced provider than you actually are.
And there are many of the other reasons, none of which have anything whatsoever to do with your pricing.
Look at it this way: Lowering your prices can be tempting. It’s a quick and extremely easy way to make your products or services seem better value.
However, it’s a terrible strategy. It kills profitability. And it engages you in a pricing race to the bottom, where the cheapest provider wins. They ‘win’ the worst possible slice of the marketplace… low profit customers, who’ll leave as soon as a cheaper provider turns up.
A far better alternative is to find out what’s actually causing people to think you’re too expensive. And to then focus on improving your marketing techniques in those key areas.
If you’re not sure where to start looking for answers, that brief list above is a useful place to begin.
Let me help you grow your business! I can help you build a more successful business, increase your sales and boost your profits. Read this to find out how.