You’ve finally finished your first product and you’re excited to put it up for sale until all of a sudden you get this gut feeling your pricing your products too low.
You know that you should be charging more, but your not sure if people will pay the asking price.
After all, there are a ton of other experts in your niche selling similar products and you can’t see how you will be able to compete with them.
So what should you do? Should you start your business charging less than what your worth or should you charge your worth and hope for the best?
Awesome question, in this blog post I want to share with you some of my favorite secrets to pricing your products at a fair price and finding the customers who will be more than happy to pay for them.
Here are my top 10 ways to defeat ever undercharging for your services even if your brand new in your industry.
1) First,let’s focus on the mindset shift.
I understand you may be having inner doubts about your products and services true worth and for the most part that’s human nature.
But in order to charge the prices that you deserve (higher prices) you must understand the true value your products and services are giving to your customers. You must know the exact outcome that your customers will have once they have taken your course or worked directly with you.
In order to complete this step, you want to make sure that your products and services will be giving your customers a tangible end result. For instance, if you’re a web designer the end result may be a beautifully designed website or if you’re a weight loss coach that end result may be to help them lose 10 pounds in 30 days.
Once you have identified what that result is I want you to write it down and be detailed about what obstacles they are avoiding by working with you. It could be that there saving a ton of money or time but be clear about the shortcut you’re offering your customers with your products and services.
2) The Guru Myth.
The truth is that 99% of your customers will have no idea how long you’ve been doing what you’ve been doing. The only thing your customers will ever know about you is what you show them. For instance, I’ve been in business helping others for 5+yrs and I’ve had less than 95% of my customers ask me how long I’ve been in business.
All they want to know is if I can help them produce the results they’re looking for and you can easily answer that question by showing previous work you’ve done or customer testimonials. If you don’t have those no biggie just offer free training of some kind or you can create an example of the work you can do.
3) Free Content Strategy.
Sometimes as entrepreneurs we feel guilty about leaving those behind that can’t afford our work and so we lower our prices to be able to serve everyone. But there’s so many reasons you don’t want to use this method and I’ll share why later on. But a great way to serve those who can’t afford you without lowering your prices is by offering free content.
Free content is not only great to be able to offer help to those who can’t afford your services but it will help you build enough trust with your audience for them to feel comfortable paying you higher fees for your work.
Some of the best ways to package your free content is by blogging, podcasting, videos, personal newsletters, free training series, free webinars and social media.
4) Your Sales Copy Matters.
Your sales copy should communicate that you know what you’re doing and the details about the product your offering, the clearer you are on these things the easier it will be for your customers to make a buying decision.
5) Your Perceived Value.
In order to charge higher fee’s for your work, you want to make sure that your brand is positioned to express that you’re an expert in your industry. It does not take much to accomplish this effect, a great website, offering your free content with great design and having up to part social media accounts will do it.
In fact, I’m a strong believer that offering free content plays a big role in being able to charge higher prices because it gives your prospects a sample of the way you work.
I know that you may be thinking by lowering your prices you will get more customers. But I’m here to bust up that lie and save you from ever making this big mistake.
I understand were in tough times and you feel as though you have to offer your products at a lower price for them to sell, but this is far from the truth. The truth is people are buying products every day and there is a market within most niches who are willing to pay a higher fee for better content and a better experience.
These kinds of customers don’t mind paying a higher fee and they usually won’t buy products that are a mismatch in price. Meaning if what your offering should be in the $500 or $997 price range but your selling it for $97 they won’t buy because these people want the best and that price indirectly communicates to them, you don’t believe you’re the best in your industry.
Remember great customers don’t just buy because of price point they buy because they trust your products are the best and that it will get them the results they want.
Now does this mean you can’t sell a $97 product? No, but the products value should be very close to the actual price point and if it’s underpriced it will seem sketchy to those who will be your best customers.
In fact here are the top four reasons to avoid
undercharging for your products and services:
-You will attract price shoppers who can be a big headache and will only stick around for the price, but they have no loyalty or very small loyalty to your company.
-When you undercharge for your products you will never be seen as the best in your field. The truth is when your prices are way lower than what they should be people will pre-determine that your not the best and their experience with the product will be below average or at best “ok”.
-You will be working 10X harder to meet your income goals. For instance, if your product is $97 and you sell 50 copies you would earn $4,850. Now if that products real value is $497 & you charge $497 & sell 50 copies you make $24,850 that’s a $20,000 increase without changing the actual product.
-You won’t work as inspired knowing your charging less than what your product is really worth.
Outside of all of these major points, working with people who value your products and who are willing to pay for your services are the best customers to have. But you won’t attract these type of customers by undercharging for your products and services because they won’t buy them.
So how do you know your undercharging for your products and services?
Find out the highest average price in your industry for your products and see if your price is around your industry’s highest average. If it’s not your probably charging to low.
- Do a gut check and if your first instinct is the price is too low it most likely is.
So what if you change your prices and you lose some customers?
Yes, you will lose some of your customers but as mentioned earlier these most likely were the price shoppers, but there will also be those who will stay. As long as you can reposition your product and services in some way even if you just change the design or packaging most people won’t mind paying the higher price for the service.
What I’ve learned is your customers will also respect you more.
I know you’re probably nervous to take this leap of faith of charging what your worth but its the only way to make the income you deserve and work with those who deserve to work with you.
You’ve got what it takes now take action 🙂
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