Customers don’t give a fig about pricing
Your customers don’t actually give a fig about pricing!
More accurately, your ‘ideal’ customers don’t care about it as much as you think they do.
Many business owners, including myself, have spent hours agonising over price.
Women business owners particularly struggle setting their prices and being comfortable with their actual worth.
We ask ourselves: “How much would my customer be willing to pay?”, “Am I too expensive?”, “Am I pricing myself out of the market?”.
You could drive yourself around the bend trying to match your competitor’s pricing, but that is merry-go-round you don’t want to ride on.
For the vast majority of businesses, industries, products and services, your A and B list clients are happy to pay whatever price you’re asking, as long as they’re getting value for money.
Customers only need to be convinced they’re getting what they paid for, that is “It’s worth it” – and the beauty of value and worth is that it’s subjective.
To explain myself, value is in the eyes of the beholder, that is, pricing is directly related to “perceived value”.
As long as the perceived benefits you offer, stack up to the price you’re asking, then the customers you want will be willing to pay it.
The customers that don’t want to pay it, are probably your D-list clients – the ones that are going to be too much trouble to deal with and you don’t want anyway.
The key is being able to identity your unique value benefits and articulating them in all of your marketing and communication materials.
The benefits you can offer clients are almost endless but include:
- Emotional benefits – does the customer feel good or happy buying your product or service
- Social benefits – will it make the customer look good to others, or increase their social standing
- Economic benefits – will it help them save or make money in the long run
- Lifestyle benefits – will it save them time, make their life better
- Moral benefits – will it benefit others, the community or environment
- Feature benefits – what will the customer actually get and particularly can’t get from somewhere else
- Risk reduction benefits – what do you offer that may reduce their fear or level of perceived risk buying from you or your industry.
Now I’m not giving you open licence to charge exorbitant prices. At the end of the day customers have to be convinced they’re getting value for money and the only way to do that is to match your pricing to your unique benefit statements.
Give them reasons to trust you and have a level of comfort buying from you.
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