Well, presumably if you set your price way above the customers' perception of the value they'd get from the purchase, you won't sell anything. And if your price is only a minute fraction of the value, you won't sell much either because people will think they smell a rat.
The problem with trying to fix a fair price is who decides what is fair? For a start, never allow competitors to determine your prices. They have no interest in your long term survival.
Price your customers, not your services, so that you are dealing with those who get the most value out of working with you. Don't neglect the section of your niche where price is of no consequence, but before you charge a premium price, make certain you believe you are worth it.
There's only one profession that says, "Pay me and I'll fake it," and that's the oldest one in the world!
The objective of your pricing strategy is not to fill your capacity - It's to maximise your profit over a given time period! If maximum profit is achievable by running at half capacity, then run at half capacity!
Purchasing decisions are made on emotion and justified on reason. Emotional decisions are made on relative, not absolute prices, and people perceive prices in relative, or proportional terms.
If you agree with these thoughts and would like to find out more about pricing your services so you can make sales without selling and get paid what you're worth, visit www.sws3.co.uk to download 30 more free practical ideas you can implement straight away in your business.
“The objective of your pricing strategy is not to fill your capacity -
It's to maximise your profit”
Professional Service Providers who charge for their time or their materials, or whose prices are influenced by their competitors can find out how to get paid what they're really worth at www.sws3.co.uk.
Napoleon Hill once wrote, "There is no standard price on ideas. The creator of ideas makes his own price, and if he is smart, gets it!"
We are all entitled to be compensated for the value that the results of our efforts create for our customers, so don't get squeamish about asking to be paid. Some people seem to think 'money', and even more often 'profit', is a dirty word.
There's nothing dirty in making a profit - Doctors profit from our illnesses and accidents. Professors and Teachers profit from the ignorance of their students, and Farmers profit from our hunger.
Profits get a bad press because many people are unclear where they come from. Profits come from taking risks - Entrepreneurs have to give long before they receive.
If both parties in a transaction make a handsome profit - The purchaser gets a good return on their investment in the price and the provider does the same based on their investment in being able to deliver whatever they deliver - then all is well. It's Win-Win!
If you agree with these thoughts and would like to find out more about pricing your services so you can make sales without selling and get paid what you're worth, visit www.sws3.co.uk to download 30 more free practical ideas you can implement straight away in your business.
“We are all entitled to be compensated for the value that the results of
our efforts create for our customers”
Service providers who charge for their time or their materials, or whose prices are influenced by their competitors can find out how to get paid what they're really worth at www.sws3.co.uk.
