We hear from a lot of business professionals about the challenges they face when it comes to setting their business prices, particularly in industries that are based on services.
What are you doing in all this?
Here are some suggestions that will help you overcome the difficulties in setting your pricing for your business in the event that you run the business model of service.
What NOT to Do:
Do not be cheap. While it’s tempting to think of a client as a client but you’re making yourself and your company appear just another product that is available off the shelf. If you are offering something unique (and it is a fact that you do due to the person you are), the fact that you offer a special service must be conveyed to potential clients. So, using your services with an “anytime, anywhere” approach can diminish the significance of the service you provide. This can also be communicated through wrong pricing strategies.
Do not worry about what your competitors are charging. They may have a different model of business than you do, and even when they don’t, the services they provide at what cost is probably different. Keep your focus on the needs of your business, and you’ll be more profitable.
Do not ask your customer about their spending plan. If you’re a “real” business person, your pricing requirements must reflect the needs of your business. What amount of money people have to employ you for their services isn’t essential. This puts them in the driver’s seat and allows them to tell you the amount they are able to afford when it comes to the value you can provide.
Don’t exchange “dollars for hours” – this kind of model will surely result in you undercutting your prices and could result in negotiations with customers over the actual work you’ve done and how long it took. You do not want to face the kind of specific criticism that you will be subject to. In the end, what difference is it to how long it takes you to finish services if results are the only thing that matters?
What TO DO:
It is important to invest in quality, even though it’s obvious, many small entrepreneurs don’t consider whether their customers as vital; rather, they concentrate on the number of clients. Like everything else, you must work to find those who actually really need your assistance and are likely to return to you for repeat business. How do you locate them? You have to spend money to promote them to get them. Don’t target people who are seeking free or low-cost options.
Display your results and make sure that your clients comprehend the results you have provided rather than the length of time or process to achieve them. Have them read reviews from clients and tell them about the outcomes you’ve obtained for your clients.
Find the right clients at the end of the day, you do not want to work with everybody as there’s no way you will be able to appeal to all potential clients, and honestly, you don’t need to! Therefore, it is important to have a way to identify the most suitable clients, as they’ll become loyal clients and, hopefully, will return business as well as referrals.
Be confident – if you show the confidence you ought to, your customers will be able to appreciate the importance of what you provide. You have to be confident in your actions and yourself and if you don’t do that, redesign your business and your life to believe in yourself. Like the old phrase “believe in yourself utterly to have others believe the same.”