Why Low Prices Suck for Your Customers
How do you really feel about charging higher prices for your product or service?
Today I am going to give you three reasons why charging low prices sucks not just for you but also for your customer.
If I had a buck for every time I have told a female business owner that her prices were too low I would be recording this two minute Tuesday in Fiji. I tell you all often how low prices are robbing you of profit and making you work a whole lot harder that you should be it is still a sticking point. So now I am going to tell you why your low prices are negatively affecting your customers!
#1 Setting higher pricing will give the customer a better experience
If you have under-priced your product or service and need to take on more customers or clients to ensure you are able to pay the bills the customer will be the one who ultimately misses out. It may not be possible to provide the high quality service or product you offer at the price you have set – eventually you will either have to up the price or drop the quality.
#2 Setting a higher price will get your customers results
This is for all of the service providers out there! If you are a personal trainer charging $20 an hour how committed are your customers going to be to get out of bed and get dressed and head to the gym or park to meet you for a session? Charge those customers double or triple the price and all of sudden the cost of the session far outweighs the extra hour in bed. The higher the price, the more committed the customer and the better the results your customer will get.
#3 Setting a higher price demonstrates your expertise
You can be the absolute best in the world at what you do but if you charge low prices your customers will assume that you are not the expert in whatever you are offering. Customers expect to pay for of premium service or product. If I offered business coaching at $50 an hour how likely would you be to trust me? You might have some interest in what I have to say but how seriously will you take me? A client who pays a cheap rate is more likely to argue against your advice and that could actually be really quite bad for them.
So the moral of the story – don’t rip of your customer by charging low prices!
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