How To Set Your Businesses Pricing

If you’re unsure about your pricing, take a look at your much bigger competitors or even those of a similar size. Now,Business Pricing you do have to compare apples with apples, but looking at their delivery, how far away are you from them? Do you really understand your marketplace? And are you constantly attending courses to evolve your knowledge and understanding of your industry best practice? To stay fresh? Do you understand the strategy behind what you’re trying to do? If so, you’ll absolutely wipe the floor with the majority of your competitors.

Also, if your client comes back and says your pricing is a bit on the high side (I’d always say that you should be in the top third price wise), ask them what they think their budget could stretch to. I’d never suggest reducing your price but you could offer to ‘part fund’ the first three months of the treatment to show the value that you bring (remember FS from your V x D + FS > R sales equation). This is also known as their puppy dog sales tactic, so, someone comes into a pet shop because they’ve been dragged in there by the kids and the kids are pestering for a puppy. The pet shop owners says take the puppy for the weekend, the kids

will be fed up of looking after it by the end of the weekend and be back on their Xbox, which they are, but by then the parents (the decision makers) absolutely love the puppy and wouldn’t part with it, so return to the pet shop, buy the puppy and a load of other stuff that’s needed for looking after it. What’s your puppy?

One last thing on pricing; have you noticed that the clients that push you down on price are a bigger pain in the arse and typically take more of your time than any other client? It’s often questionable if you actually make any money from them. Plus, while you’re spending all your time looking after them you’re ignoring your well-paying clients that take a fraction of your time. They may be sitting there feeling unappreciated and thinking of leaving you (68% of lost clients go because they thought you didn’t care). I bet when you took on these people that just drain you resources,  you had a gut feeling that they were going to bit difficult but decided to ignore it and thought it would be okay.

Do yourself a favour, and if you can’t educate them into understanding how great you are and what they need to do to make this a win-win partnership, ditch them and  give them to your competitors. You’ll feel better, you’ll have more time to grow your business with the clients you want, and you’ll feel good about that too.

And if potential clients not turning up to appointments is an issue for you, it’s really important that you get a deposit for two reasons. Firstly, if somebody pays a deposit no matter what the amount, they’re much more likely to turn up. Once they’ve let you down it will be almost impossible to get hold of them because they’ll feel guilty and so won’t want to talk to you. And secondly it’s important that you value your time and if somebody is going to let you down they still need to pay something.

By Alan Adams

About 

As an award-winning business coach and bestselling author, Alan S Adams has helped hundreds of businesses across the UK to move from simply surviving to positively thriving. The publication of his second book Passion To Profit: 7 Steps To Building A Kick-Ass Agency and his third book, The Beautiful Business: Secrets to Sculpting Your Ultimate Clinic, sees him focus very specifically on creative agencies and aesthetic clinic sector, sharing advice and guidance with the potential to revolutionise turnover, client retention and overall growth. Alan was also recognised by Enterprise Nation as one of the UK’s Top 50 Advisors and APCTC Coach of The Year Finalist.

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