It’s been a tough time for small business traders since purse strings seized up again last year. Just when the economy looked as though it would ride China’s wave out of the woods, the whole world put the brakes on growth once again.
A combination of cost cutting and incremental price increases have seen the big wigs of corporate Australia maintain profitability, but at the smaller end of town this second pricing point appears much harder to push. Why?
Scared of losing customers? Think it will alienate new customers? Maybe just scared of communicating it?
Whatever the unwillingness, here are four simple steps to get your pricing strategy clear and start making more money today.
1. Review Results
Look at the positive impact your product or service provides to customers and make a list of the biggest benefits. Are they entertained or wealthier as a result, have they got more time or are they doing things quicker now?
Whatever the benefit, list it down and communicate it in any marketing material to current and prospective clients so they instantly appreciate the value that you provide. Importantly, this will also re-affirm to you what the product or service is worth.
2. Set Competition Aside
Once the key benefits of your offering are identified you should have a good idea of the unique value your product or service provides. Recognising and reinforcing this point of differentiation is crucial to commanding a bigger price tag.
And when your unique point of difference is identified and driven home, the competition can be put to the side of pricing decisions – they don’t do what you do – simple as that.
3. Get Packaging
Now it’s time to raise prices, and the easiest way to do that is by packaging up products.
It’s important to add value here by providing additional features to packaged products, whether its support or exclusive extras, so customers can see what they’re paying extra for.
This is the most effective way to entice customers into a higher ongoing rate annd this higher, packaged price quickly becomes their base spend.
4. Team Up
Networking on a business level is just as important and productive as on a personal level as it increases visibility by opening up a new audience and is also a great avenue for value add packages.
Find a business offering a good or service compatible with yours and explore opportunities to package up products, offer value add services and cross sell to customers. Remember, people are happy to pay for value when they see it.
It really is as simple as that.
Now you know how, get back to work and apply these 4 simple steps to your business offering and increase prices today.
You know you’re worth it, so make sure your customers do too.For more tips on getting prices right, follow the tribe on Twitter.