Want to push your pricing up but worried about justifying it?
The impact of pricing too cheap
The price point you choose usually says far more about you than it does about your clients.
It’s easy to convince ourselves that “they won’t pay more than £XX”.
It’s easy to listen to their money woes and decide to drop your price before you’ve even told them what it is.
When you price too low it can severely dent your credibility.
I saw a Facebook ad the other day for the coaching qualification for the discounted price of £25!
My brain instantly tells me that it’ll be a pile of rubbish and not worth the paper it’s printed on.
Maybe it’s an excellent deal. But £25 is shockingly low.
Why sell it that cheaply? Are the company in dire straits and need to drum up some quick cash?
There’s a good chance the supplier in question thinks it’s an epic offer and are really proud of it.
The people who will purchase it probably don’t have much money and can only afford £25 qualification and think it’ll change their luck.
The chance of them complaining and causing way more than £25 of hassle for the supplier is very high.
All because the supplier went for a cheap price point.
What is your pricing saying about you?
My pricing is in the middle ground. I’m definitely not the cheapest but I’m also nowhere near the most expensive either. Plus my pricing gives a good Return on Investment for my clients while being high enough to keep them focused on implementing.
Do I put my prices up? Yes, usually at least 3 times a year ?
The more case studies I gain the higher the price goes ?
Pricing comes down to positioning.
That coaching company above have, hopefully unwittingly, priced themselves as bargain basement.
As they are bargain basement they can get away with a cheap website and pretty average marketing material.
Now, I haven’t checked them out so maybe they have a full on all bells & whistles site, but by charging £25 they don’t need to as their clients will definitely be buying on price.
What you want to do is to encourage your clients to base their purchase decision on the value of working with you.
What is the value of working with you?
Why should they buy from you versus another supplier (and don’t say good quality service and competitive pricing as all they hear is “blar blar blar”.
The more you can nail the value piece the higher you can push your price.
The other element to charging more is to have plenty of credibility factors in place to justify the price.
What credibility factors do you need?
The biggest one is testimonials and/or case studies.
When you have a stack of proof that you can deliver a great result for people then its easy to justify your price.
How many testimonials or case studies do you have?
How well do they describe the value that you delivered?
Fluffy ones saying you are lovely won’t cut it!
You need ones that answer these points (or very similar ones):
- Why did you feel you needed to [insert the thing they needed to change]?
- Why did you feel we were the right choice?
- What was the outcome of us working together?
Here’s one of mine that perfectly demonstrates it.
Other fab credibility factors will depend on what it is you do but examples are:
- A niche. People will pay more to work with a specialist than a generalist. What do you specialise in?
- Logos of your clients especially if you have some juicy ones in there.
- Photos of you speaking (assuming they are good quality photos of you speaking in front of a decent sized audience).
- Photos of you working with your clients eg running workshops.
- Books you have written.
- Big names who have commented on your “stuff”
There’s plenty of others too.
What action are you going to take to push your prices up and keep them there?