What should you do when you are getting feedback that your price is too high? It’s an issue that most businesses face, but if you are running your own business and responsible for the service and the pricing this may be causing you concerns. If you are worried about missing out on business because you are charging too much, I think you have some options:
You can totally ignore the feedback. If you have a steady stream of satisfied customers, there’s no need to pay attention to a few comments.
If it’s a genuine concern, you can put your price down. This option is easy but comes with a big health warning. There’s always someone in your sector offering a cheaper alternative – whether you are an accountant, a photographer or a social media manager! And if you reduce your price it becomes a race to the bottom. This isn’t to say you shouldn’t consider price promotions from time to time. But in general my advice on this one is: value your experience, training and investment in your skills and equipment. If your service or product is based on quality, don’t slash your prices, accept that someone else will do it cheaper.
You can be really clear about your prices. If you don’t want to create a price list for your bespoke service, that’s fine, a line on your website that says “Prices from £500” (or whatever) may be enough. That way those who don’t place a value on what you do, or genuinely can’t afford it, will take themselves away. Include some indication of price before you invest your time and energy in delivering a high quality bespoke service that they won’t pay for.
The most creative option is to think about the silver standard. If you consider your service as the gold standard, is there a way to offer a reduced version or a mini package but still give your clients a great quality experience? If you are a photographer, can you offer a shorter version of your full studio experience? If you are a business coach can you offer workshops where business owners benefit from your insight, but costs them less than the one to one service? If you create any kind of handmade goods, can you offer your clients a choice from a selection of simple designs for a lower price than your bespoke one off product? Try to reduce the time you spend delivering the service for your silver standard and minimise any bought in costs, otherwise you will impact on your profitability.
In many small businesses there will be a way to offer a lower price option, without devaluing the quality of your premium product, and it may open up your service to a whole new market.
