These blogs all start the same. I meet with a client and everything is going smoothly. Ideas are flowing and the energy in the room is electrifying. Then I ask about something that flips a switch in them, either good or bad.
This time I asked about their pricing.
“Tell me about your pricing models” I ask. Simply wondering if there is some low hanging fruit that is waiting to be picked.
Typically I get a straightforward answer…and then.
The “and then” part is when the client goes into a dramatic justification or story about how the pricing came about. As if they knew I was going to challenge them on it. I have some smart clients. However, they typically guess incorrectly on the direction I am going to ask them to go.
You see, deep down inside, many business owners hate dealing with money. They hate asking for it, they hate needing it and they hate having to justify their price to people that may or may not pay for it. This is the mindset that can hurt a business. Money is not the root of all evil. Money is the means by which you can either succeed or fail in business. It is a tool, just like a hammer. Use it wisely and it will work much better than your fist. Use it incorrectly and your fingers will be in a lot of pain.
Back to my client, I needed to remove and replace the head trash he had about his pricing model. He was worth more than he was charging. He had a tight, respected niche in an area that people were willing and able to spend money. Why wouldn’t you charge more?
It came down to this simple fact: if you do not believe you are worth it, who will?
Tell me you are the best. That no one can do it like you do it. Tell me that if customers go somewhere else they are being treated at a less than excellent level. Then tell me you need to price yourself like your competitors that are not as good as you.
I don’t buy it. Your potential customers won’t either.
The only way that works is if all potential clients fail to see a value in your service vs. your competitors. You see yourself and price yourself as a commodity. That is a different blog entirely. In this instance, he had a huge differentiator that had enormous value. But he failed to see it.
And therefore he failed to charge for it.
How long do you think coffee shops would survive if they didn’t charge a premium for their coffee? Could they make it such an art, like many of them do? Of course not, they would offer the same black swill that any other cafe offers and not be able to make rent.
Part of the value is in the price itself.
James is a Business Coach and Mentor for Draw In Customers. He has helped clients charge more than they initially wanted for their awesome services. Which made them and their clients happier. If you would like to achieve your business success goals, and get paid what you are worth, James has some tips for you and is available every once in a while to share them. Simply email him at james@drawincustomers.com.
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