Business Pricing Strategy: Are You Cheap By Any Chance?
One of thee biggest blunders most entrepreneurs do when starting out with their businesses is to price themselves the “Cheapest” and they think that this strategy by itself would be enough to justify their competitive edge in the market place their operate in. Of course, they could get the biggest shock of their lives – they wouldn’t be doing any better than anyone else struggling to make it in the same market.
Pricing yourself the cheapest is your self-written dictum to go down a vicious downward spiral that you will never be able to avoid. Least prices always won’t fetch you business, if you were thinking about its veracity, authenticity or efficacy. It is a way of firing yourself out of your own competitive market place.
Instead of pricing yourself the lowest in your market, you could think of adding value to your product and service offerings and charge a premium. There is always a market for every pricing level and when you could price things at a premium, why price less? What does it fetch you? Low-paying clients who still demand the same level of service you would expect to provide a high-paying client? They would demand the same time and effort on your part to serve them better?
Nothing changes for you except that you would work harder and longer for the same client who paid less. Instead, you could have spared that time for a better paying client and earn more money.
It is all about choice, effort and return on investments. It is about the temerity to stay with well paying clients and say “no” to clients who only look for the cheapest deal on earth. These clients are not worth your time. You will end up doing more for them for less.
Have you had trouble with such clients before? Did you experience the agony of having to serve a low-paying client just as well as you would serve a high-paying client? Why don’t you let me know what your experiences have been and what steps you took to counter them?
