And your mind reinforces these beliefs by adding little comments such as: “Who do you think you are, charging those prices?” and “They’ll see through me and realise I’m not as good as they think”. This is what happened to someone I was chatting to recently. Instead of positioning herself as the true expert and brilliant coach she is, she made it into a money issue.
There are loads of business owners who feel uneasy when they’re discussing price and who subsequently charge a fraction of what they’re really worth. And assuming their customers have the same money beliefs as themselves is just the start.
They don’t know who their ideal customers are and, as a result, don’t understand the huge value they bring to them. They have a “spray and pray” approach to marketing, where any customer will do, and then they end up competing on price. Bad place to be.
Let’s face it, when you get into the “competing on price” game you’re always focused on being the cheapest. If you only attract people who want the cheapest, you will always have to offer more for less, just to keep up. It’s a hard way to make a living.
But do you really want to be the cheapest? People looking for “the cheapest” probably won’t be loyal. They don’t really care about you. They just want a commodity at the lowest possible price. Which is fine if you’re selling baked beans or toilet rolls.
But you’re a small business. Your business is a huge part of your life, filled with your passion, energy and time. So it’s better to find those ideal customers – people who really value you, love what you do, for whom you make a real difference. They aren’t looking for cheap. They’re looking for the best fit for them. There’s a big difference. Leave cheap to the others.
Value what you do. Price it so you make a decent profit. Get clear on how you make a difference to your ideal customers. Then, only market yourself to your ideal customers, not people looking for “cheap”. It will make a huge difference to both your bottom line and brand value.
