Don’t you dare DM me your price!!!”How to create an effective pricing strategy.
A few days ago, a friend sent me this video.
I've said it myself and I will say it again, "Nobody has time with anybody that they have to ask the price for a good or service"
Let me say that again.
1. Because it's tiresome.
2, Because it's stressful, and,
3. Because we hate it-A LOT.
And as Keevo says, "Amazon putting their price, why not you?" - I'm paraphrasing here, but you get my drift.
I've asked countless times why this is happening, and the answers vary. Some of the responses include:
1. They don't want their competition to know their prices ('REAAALLLLYYY?');
2. They want people to come into their "Brick and Mortar", so it's really a marketing strategy.
But what about the client who is coming from far away and doesn't have a credit/debit card, (or anyone for that matter) shouldn't they have an idea of how much a product/service will cost?
However, all is not lost.
Recently, I hosted a workshop on pricing as part of our "Building Your Entrepreneurial Framework Series." In it, we discussed some of the emotional issues around pricing. These include:
Not wanting to lose the sale;
Not wanting to lose the customer;
Being perceived as “too expensive”;
Not sure of your “Value Proposition”-a.k.a., your ‘secret sauce’
Without giving too much away (this workshop will be run again in early 2020), these concerns can be easily addressed as:
1. Not wanting to lose the sale- There will be other sales;
You never run out of opportunities. As long as you keep improving your product, there will be new customers to engage and enchant;
2. Not wanting to lose the customer- Is this “really" your “ideal customer”?
This problem only exists if you're trying to sell to everyone. The real trick in this game is to find out who YOUR customers are and serve them faithfully. Then price becomes immaterial since they will pay you regardless to what the market will bear.
3. Being perceived as “too expensive”; This is a double-edged sword; as compared to what/who? Again, This speaks to your position in the market.
Not everyone will be a market leader. Some will serve a niche market and achieve success "Staying in their Lane". If that is you, then again pricing for the masses and not the classes means that you'll always have the sale.
4. Not sure of your “Value Proposition”-a.k.a., your ‘secret sauce’- Have you done the “due diligence”?
Simply put, your value proposition/secret sauce describes the one thing that YOU do that is better than anyone else in your industry. You find that out by looking at the things you do well, as well as the things your competition does well and measuring performance. The other way is looking for the gaps/pain points in your neck of the woods, and strategizing how you can fill those areas. Again, If you find it and serve it faithfully and consistently, then the price is no longer an issue.
In the end, if you're unwilling to face the pricing challenges head-on, then you'll always be afraid of placing the required cost of business on your goods and/or services.
Instead, you'll diminish your true value from your customer, who will be unwilling to entertain your game of 'hide and go seek' pricing version- and will grow tired of it and of YOU.
What are your thoughts?