Guest Post By Lois Kirkpatrick, MBA
One of the biggest mistakes small business owners make is not charging enough for what they sell. Too many entrepreneurs use simple math to figure out how much to charge for their product or service. They decide to compete on price by charging as little as they can get away with. They think that offering the cheapest price will win them more customers.
That’s not always true. Plus, it basically tells customers that there’s nothing special about what you sell.
It’s better to set your price based on how much your product or service can do for your customer. For example, if your product saves time, think about how much your customers would pay for more free time. Busy adults might be willing to pay 10 times what you’re charging just to have a little more extra time in their lives!
You can also set your price based on your customers’ goals and dreams. Let’s say that your clients are reaching up. They want to do more, be more and have more. Making your service more expensive than the competition sends the message that it’s higher quality and more valuable. If you make your service feel like an achievement, high achievers will pay more for it.
Just remember that if you charge more, everything about your business has to say, “This expense is worth it.” That means your website and your social media posts have to look as upscale as your price. Work with a professional who will help you make the price you charge look justified. Potential customers from around the world will be able to see your web content, so make it shine.
About the Author
Lois Kirkpatrick has worked on successful marketing campaigns for a variety of products and services, from mattresses and degree programs to fundraisers and community events.