Pricing your product or service is a critical component of a successful business, but many people struggle with finding the optimal price. I loved a recent post on LinkedIn by Jared Gibson, a co-founder of Outworks, a LinkedIn content agency.
While it is tempting to set your price on the low end, assuming that people will buy your thing because it’s a deal, this strategy can actually backfire. People want a value, but if your price is too low in the marketplace, it can signal to your prospective buyers that it isn’t at the same standard and quality as your competitors.
Scroll down Jared’s post and watch his short video. Consider whether you might want to make any adjustments to your pricing.
My colleague, Matthew Kimberley, had a great podcast, Marketing for Coaches. In one episode he talked about why every coach should have a “$1000 burger” available for purchase for that client who only buys the best. He explained that you might never sell one, but what if you do? (And it positions you as a premier provider.)
He also said about pricing in general in Episode 107: Pricing for Coaches, “We tend to assume that lower prices get us more clients, but the truth is, some clients–generally the best ones–are looking for high prices, because they view a high price as an assurance of quality.”
In many situations, I have found that clients who don’t pay my stated rates are difficult clients and don’t respect my knowledge and advice in the same way as clients who pay my full rate.
Set your prices at a level where your client feels they have gotten value, and you have made a healthy profit. That is how to have a thriving business over the long term.
Photo by Aleksandr Popov on Unsplash
