What’s the one thing your clients or customers will NEVER tell you? The answer is:
“You should increase your prices.”
The only time I ever hear this is when I hire a business consultant who looks at my business and says, “You’re still underpriced.” Ever heard or thought that before?
One big money leak I often find with entrepreneurs is that they don’t value their services or products enough, and therefore, keep their prices low. People won’t tell you because they know they’re getting a good deal.
How do we know you are priced too low?
Because they keep buying your stuff! People only spend money if they believe what they are buying is more valuable than the money in their pockets. If you’re rarely getting “no’s”, then you are REALLY underpriced! At least 20% of people SHOULD say “no” to you if you’re priced correctly.
In my experience, I rarely every find an entrepreneur who isn’t underpriced.
Because we love what we do, regardless of the money. It’s crazy people pay us as well as they do for doing what we love! And that’s EXACTLY the way it should be!
You may be afraid of being overpriced and “ripping people off” compared to what they pay you. You may wonder if you’ll lose business.
These are good questions to consider. Let’s consider these:
Am I Ripping People Off?
Here’s a good way to know the answer to this – If they pay for your service or product, the answer is “no.” Remember, they’ll only pay if they believe you’re services are worth LESS than what they pay.
If you do this with the intent to deceive or over-promise, then you’ll see the evidence in the form of refunds and complaints, and you don’t deserve to be in business.
Will I Lose Business?
This is always a possibility, especially if you might be in the wrong market. Find the market that values you the way you deserve. Even if you can help anyone, you shouldn’t be focusing on everyone. Work with those that want to work with you. Offer products and services that people will be grateful for.
Whenever I have changed my market, I have lost business temporarily. However, the new market has often been more profitable and easier to work with. This is why I focus on entrepreneurs (not “wantrapreneurs” who love the idea of a business, but don’t really have one) or 9-5 employees. What I have helps everyone, but I only focus on entrepreneurs that are success-minded, want to grow, and are ready to go from good to better financially. I’m okay letting other competitors serve “wantrapreneurs” and employees because I know where I produce the best results and happiest clients.
So should you raise your prices?
Most likely. Try it out. Watch what will happen. As I’ve valued myself and my services more, others do as well. The things I’ve told myself in my own mind about my value has caused more lost opportunity costs and leaks than anything in my budget.
So how much do you think you are worth?