The 3 Biggest Pricing Mistakes and How To Avoid Them
By Sandra Martini
I was recently on a forum where several "time for money" service professionals and
business owners were discussing their "rates." I immediately noticed that these smart,
savvy business owners were falling into some pricing myth traps.
Here are the three biggest pricing mistakes that I see being made by "time for money"
small business owners:
1. Matching/Undercutting.
Many small business owners look around at what everyone else is doing and they do
the same thing -- or worse, they lower their rate thinking it makes them more
appealing to prospective clients. It doesn't, it makes you look like a bargain and sets
you up to be treated as one would treat a bargain.
I challenge you to separate yourself from others in your industry. You want to be
exclusive. You want to be known as the Mercedes or the BMW -- not as the Daewoo.
Offer clients an exceptional experience and they will pay your price.
2. Focusing on Pricing.
When speaking with prospective clients, you don't want to focus on your rate or your
"price" -- you want to focus on the results that the prospective client will see as a result
of partnering with you.
Discuss the type of results that clients typically see, let them feel that happy place AND
want to stay there, then give the price.
For example, a virtual assistant can share that her clients have more time to do those
things they do best rather than handle all the administrative details of running a
successful business and, as a result, they'll generate more revenue.
A massage therapist can discuss the ongoing positive physical, mental and emotional
results which occur with recurring weekly massages rather than those booked only
"when you need one".
3. Discounting.
When someone next asks you for a discounted rate, I want you to pause for a second
and then say "I understand, which of my services would you like to eliminate?"
Seriously. You are a small business owner, not Wal-Mart. If a prospective client begins
by asking you for a discount, do you think he will appreciate and value all you bring
to the relationship OR will he question and haggle from Day 1?
In order to approach your pricing as the natural conclusion to a conversation rather
than allowing it to become THE conversation, you need to come from a place of
abundance. Not every prospective client will be a match for you and THAT IS OKAY.
You want to attract only those clients who recognize the results that you provide and
are willing, and able, to pay for those results.
Next week's issue will discuss how to insure consistent cash flow by creating multiple
streams of income -- and YES! anyone can do this!
About the author: For the past 5 years, Sandra Martini has been showing
self-employed business owners how to get more clients consistently by implementing
processes and systems to put their marketing on autopilot. Visit Sandra at
Sandra Martini for details, compelling client testimonials and her free audio series "5
Simple and Easy Steps to Put Your Marketing on Autopilot".
By Sandra Martini
I was recently on a forum where several "time for money" service professionals and
business owners were discussing their "rates." I immediately noticed that these smart,
savvy business owners were falling into some pricing myth traps.
Here are the three biggest pricing mistakes that I see being made by "time for money"
small business owners:
1. Matching/Undercutting.
Many small business owners look around at what everyone else is doing and they do
the same thing -- or worse, they lower their rate thinking it makes them more
appealing to prospective clients. It doesn't, it makes you look like a bargain and sets
you up to be treated as one would treat a bargain.
I challenge you to separate yourself from others in your industry. You want to be
exclusive. You want to be known as the Mercedes or the BMW -- not as the Daewoo.
Offer clients an exceptional experience and they will pay your price.
2. Focusing on Pricing.
When speaking with prospective clients, you don't want to focus on your rate or your
"price" -- you want to focus on the results that the prospective client will see as a result
of partnering with you.
Discuss the type of results that clients typically see, let them feel that happy place AND
want to stay there, then give the price.
For example, a virtual assistant can share that her clients have more time to do those
things they do best rather than handle all the administrative details of running a
successful business and, as a result, they'll generate more revenue.
A massage therapist can discuss the ongoing positive physical, mental and emotional
results which occur with recurring weekly massages rather than those booked only
"when you need one".
3. Discounting.
When someone next asks you for a discounted rate, I want you to pause for a second
and then say "I understand, which of my services would you like to eliminate?"
Seriously. You are a small business owner, not Wal-Mart. If a prospective client begins
by asking you for a discount, do you think he will appreciate and value all you bring
to the relationship OR will he question and haggle from Day 1?
In order to approach your pricing as the natural conclusion to a conversation rather
than allowing it to become THE conversation, you need to come from a place of
abundance. Not every prospective client will be a match for you and THAT IS OKAY.
You want to attract only those clients who recognize the results that you provide and
are willing, and able, to pay for those results.
Next week's issue will discuss how to insure consistent cash flow by creating multiple
streams of income -- and YES! anyone can do this!
About the author: For the past 5 years, Sandra Martini has been showing
self-employed business owners how to get more clients consistently by implementing
processes and systems to put their marketing on autopilot. Visit Sandra at
Sandra Martini for details, compelling client testimonials and her free audio series "5
Simple and Easy Steps to Put Your Marketing on Autopilot".
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