Do you have trouble determining an appropriate price for your businesses goods or services? You're not alone.
Many small businesses which assume price is the only factor that their customers consider tend to also assume that a high price strategy won't work for their business.
It can be hilarious todiscuss prices with people. I ask if they are the best at what they do. "Of course," they look astonished. "I'm definitely the best."
So if so, why aren't you pricing accordingly?
The reality is that being the best and telling people that are two different things. While your customers might agree, you still need to remind them regularly.
All businesses have the potential to determine a price that's premium for their products or service as long as it's marketed and perceived as valuable by its customer.
But the business that focuses on price being the main difference will always be compared on price and can be beaten by anyone who can do it cheaper.
To get out of the pricing trap promote the other benefits that you can offer your customers.
Guarantees, quality, warranty, delivery times and accessibility are examples of things that need to take priority in your marketing so that the difference is clear. If you don't make them aware of the differences how will they know ?
It's your job to promote those differences and follow through on what you offer.
Those customers who continue to compare only the price are best left to competitors.
Those who are happy to pay for value will be the ones that you should be working with.
It will also give you great satisfaction to know you're being paid the right amount for doing a good job.
It's not just about competing in price, it's about delivering value and making sure your customers are aware they're getting value. You'll find that they will pay a little more to get something they know is much better.
Jeremy Tauri is an associate at Plus Chartered Accountants.
