Should you lower your prices?
Most people tend to undercharge for their services. They tend to think that being cheaper is being better. This is not normally the case.
If you lower your prices you will often attract lower quality clients who are only interested in the price rather than the results. So as you can imagine it may not be easy to work with them. They could be a major problem to work with. They will not appreciate the quality of the work. They would end up being your loss making customers – and no one wants that
Another point to think about is that lower prices could push away any potential high paying clients – and these are the clients you need.
Consider also that by offering lower fees you could attract clients who want to keep pushing the boundaries and this could eventually mean you are doing more work than is required for that particular client.
So if you think you need to lower your fees just remember that clients will often be economical with the truth. The chances are that they will pay the full amount it is just they want to get it cheaper and yes they will use the service. So you could always call their bluff and say OK if you are not interested that is fine. Chances are they will be coming straight back – especially if service you are offering is exceptional and one they 100% need.
If someone is interested in your product or service and you have excellent customer feedback, good product, good client relationships then the pricing should not be an issue
Why not first of all try increasing your prices, as a test, and see what happens.
You may be surprised.
Did you know that most people perceive something that is higher priced as being of higher quality, which can encourage people to buy your product or service? So a lower price product could mean lower value.
As you increase your prices, you are also receiving more per sale. Consequently you are also increasing your profit margin. So now take this one stage further and target higher value clients.
A good example of this is if you are running a business for example Social Media Marketing and you currently charge £200 a day for your time, increase your rates to £600.
With the perceived higher quality and value in your Social Media Marketing businesses that make a lot of money vs. those that are barely getting by. In this example, one client would be worth 3 of your clients in the past. Not only have you raised your daily rate, but you have decreased the amount of work you need to do to earn the same amount of money.
Final thought: Do Increase your prices and target customers who have more money to spend on your product/service. You will get the results and clients you need.
