It seems logical to lower your prices if you’re not getting all the clients you want. Of course, it’s tempting for many solo or small business owners to justify going low. But is the answer to lower … or could it be to raise your prices?
So, if business is down or if you’re just not bringing in enough income…
…then yes, it would seem logical to respond by cowering, playing a little smaller, and keeping your prices way down.
Hey, you have to compete, right?
Add to that the 24/7 media fear parade, and you end up with a hostile environment for the average solopreneur.
What better way to compete than by lowering your prices, right?
Well, actually, NOT right.
Wrong, in fact.
And here are three reasons that you should actually raise your prices:
(And as it turns out, there are TONS of better ways to compete. But we’ll get to that.)
1.Your business is SUPPOSED to make money.
(and here, I am stating the obvious, yet it’s amazing to me how many people forget this one)
Many solopreneurs got into business because they love what they do. They’d do it for free they love it so much.
And when the talk turns to money, all their “stuff” comes up.
So, it turns out, pricing themselves low is not a competitive strategy at all.
Turns out their low prices are merely a convenient way for them to avoid their fear of charging what they’re worth.
If that rings true, here’s a reminder:
Regardless of your LIFE purpose (or passion) — the purpose of YOUR BUSINESS is to make money.
And unless there’s a very good strategy behind being the cheapest “X” in your industry, there’s NO good reason to be a commodity and go for cheap. You’re not a tube of toothpaste or a box of tampons.
2. In most cases, bargain hunters make terrible clients.
Do you really want a client who went on a long search for the cheapest [insert your profession here] she could possibly find? How invested do you think this client will be in her own long-term results?
Here’s what I mean…
Many years ago, I offered three-day personal growth retreats for women. (Yes, I was still playing music for a living – but even back then, my passion was helping people live their dreams.)
At first, I didn’t know what to charge so I went for “cheap.” I looked around at what other people charged for retreats, and I went lower.
Slight problem, though…
At each retreat, there were always several women who – in the middle of the activities on the second day – would leave to go shopping downtown.
They completely abandoned the group and had no interest in doing any of the work I was teaching.
They just wanted new shoes.
While there’s nothing wrong with shopping – this certainly wasn’t the kind of person I wanted at my retreats.
When I raised the prices of the retreats (significantly), I no longer attracted the day-shopper ladies. I only attracted the people who truly wanted results.
And I learned a huge truth about money…
Money is a channel for the most powerful energy on the planet: Commitment.
If someone is not committed enough to her own growth, passion, fun, health, wealth or business to INVEST in it through working with you…
…then most likely, she will check out to go shoe shopping halfway through your work with her.
3. Pricing yourself too low is just plain lazy thinking.
You are SO much smarter than that tired old solution of pricing yourself low.
Being the cheapest or having the very best deal?
That’s like your lizard brain just took over your marketing department.
Don’t let your lizard brain take over your marketing department.
Now then, let’s ask the big question…
Should you raise your prices?
Yes, you should.
You absolutely should.
Will it be scary?
If you know you should raise your prices, what’s keeping you from doing it now? Tell me in the comments below.