090 – “Your prices are too high”…and That’s a Good Thing
Your prices are too high…and that’s a good thing.
Let me clarify by saying it a different way…
If your prospects are not saying:
Your prices are too high
or
We got a better price from another company
Then, your prices are not high enough!
Being the lowest price in your market is a bad place to be
Many businesses only know how to compete on price
The best description of too much focus on low price is…
“a race to the bottom.”
The Position you want is – Premier Provider with Premier Pricing.
This does not mean price Gouging – that is a bad business practice and lacks integrity.
- Premier pricing is Being the Best at what you do and having the confidence to charge for it
Have you ever went to buy something and you could not believe how low the price was?
- What is your next thought?
- What’s wrong with it? What am I missing?
If you are never hearing that your price is too high – then your prices are too low.
Here’s how to fix that
- To Fix your prices – Fix your mindset. Your pricing is first of all a Limiting Belief
- STOP thinking dollars per hour to set your pricing
- Most new business owners compare their pricing to their previous job and what they made per hour.
- FIX Your Business strategy
In the Shark tank, the question they always ask, “What does it cost to make? What is your price?”
-
- If you don’t have some type of pricing advantage – You really don’t have a business opportunity
- Your strategy can be fixed on two fronts – lower your costs of production or service Operation.
- Many times a higher price is more strategic –
- A higher price creates more value
- Pricing is an Emotional response
- Pricing does not follow some kind of formula
- Fixed Pricing…there’s no such thing.
- The clearance rack is simply someone’s whim
- Don’t be afraid of being told your Price is too high – that is the title of the podcast – and if you are never being told that…raise your prices
- When you do hear, simply smile with confidence and know you have arrived at the Professional Level – Premier Pricing as a Premier Provider
- IF you want to compete on Price…
- It is a strategy
- But only if your operation is Super Tight in every other way
- You know your numbers – labor, shipping, shrinkage
- You have a Buying strategy – you make your money when you buy
- You have Efficiency to the max
