Raise the value

 

Do customers complain your price is too high? They aren’t actually concerned about the price. Raise the product value, not your price.

A Forbes article on product pricing states, “Remember: If people are complaining that prices are too high, that tells you something.”

But what does this tell you? Well here are the two most likely possibilities.

  1. The customer or client does not have the money to afford to buy it… That’s their fault. If a customer can’t buy it due to financial restraints, you are not responsible for fixing this problem.
  2. The customer does not feel like they are receiving value from the product or service for the price your advertising. Whose fault is that? It’s your fault!

EXAMPLE: A person might walk into a car dealership and say to the salesman, “A Ferrari is too expensive for a car.”

But is it really too expensive? Absolutely not, A Ferrari is a vehicle of superb value and fine craftsmanship. What the customer really means is, “I don’t have the money to spend on a Ferrari.” Expensive can sometimes be a very good thing; do not take it as an automatic negative.

People like to own expensive things, nice cars, latest technology or the latest and greatest courses. They appreciate the sense of status and worth that they receive from being able to purchase a product or service that cost a lot of money. People will complain however, if they feel they aren’t receiving value for money.

You can’t solve a customers financial situation however it is your responsibility to make sure the value you offer is worth the cost.

If your price reflects the value of your product or service don’t lower your prices, adjust the value for your market audience. I see far too often on Social Media businesses posting their latest specials as I watch their prices get lower and lower to attract any amount of clients they can get. This practice will only harm your business. What are you telling your customers if your price is too low? Your telling them “It’s only worth THIS much”.

To all those business’ offering FREE services to get clients in the door…STOP! This is not great value for money…your only making your service worthless. When I would take photographs for people I would often get families asking “Why are you charging $200 a session when Joe Blow around the corner said he would do it for $100 and that includes all the photos”

My answer was always very simple,…”Because that photographer knows what his photographs are worth.”

I did not lower my prices my product spoke for itself, I knew the value in my art was worth the price I was charging. You know what happened? I booked 90% of those clients…the other 10% could not afford me, but that was not my fault.

Listen to what your clients or customers are really saying if they complain about price, just as importantly take note if you are told more than a couple of times “You should be charging more”