There are tell-tale signs that your pricing is too low, yet you don’t realise it. If you are experiencing at least three from the list below, then you seriously need to address your pricing.
Do read through, and once you’re done, there’s a few key tasks for you, in order to make a start in charging what you are worth, and increasing the profit of your business.
The signs that your pricing is too Low
It’s just time…
- You are reading this list, so it’s already on your mind
- You have a gut feeling that it’s time to change
- Your product or service is incredibly easy to sell, and your win every sale you quote for
- There is high demand for what you offer in the market
- Your customers are often surprised at the low price you charge
Things are just not adding up financially
- You are having to take on extra work, or sell even more products, to be profitable
- The quality of service you are offering is diminishing with every new product or service you sell
- Your incoming revenue is matched by your costs, leaving little profit
- You couldn’t survive with fluctuations in sales, and for them to take a dip
- You’re not able to set aside rainy-day money
- You’re eating into any corporate tax or vat that you are setting aside
You’re attracting the wrong tribe
- You bring in clients that are attracted to price over quality
- Your clients are not loyal, and jump ship with the next discount that comes along
- You’re not sure if you are enjoying working with the people you are attracting
Your mind, body and spirit deserve it
- You are feeling the stress and pressure of not making enough sales
- Your internal bullsh*t is telling you that your competitors are better than you are and can charge more than you
- You slash your prices and make offers out of desperation
- Business feels tough, and you’re not enjoying it anymore
It makes competitive sense
- It feels as if you are in a competitor price war
- Some competitors are charging way more than you, for less
- You feel your value is superior when compared to others in the market.
If any of this resonates, then it is time to address your pricing.
Pricing is not one of those things that you just set and forget. You will always need to analyse and adapt to the changing markets we are in.
You need to know your value, and talk about your pricing confidently, rather than not charging what you and your product or service is worth.
If you are thinking about your pricing there are 3 important steps to take:
- Competitor Research:
What are the offerings of the competitors and what are they charging?
- Audit your offering:
How does your offering stack up against competitors and where is your core value to the customer, over and above theirs? If there’s no additional value, how could you add some?
- Do it!
Get your pricing changed and start talking about it confidently, in all of your marketing strategies. If you are experiencing any of the above signs, then your business is not sustainable until you take this action.