Would you like to charge more for your services? “Can I get a discount?” I bet you’ve heard this phrase before. Perhaps you heard it too often even though your services or products are reasonably priced.
The „common-sense“ answer would be „sure! Let me get you 10% off!“. There are several problems with this answer though.
The fact that you’re accepting to offer a discount implies that your prices weren’t that reasonably priced to begin with. It means you were overcharging your customer initially.
The second problem with this answer is that the customer is now used to not paying the actual price when dealing with your business. So get ready to hand out more discounts later on as well. And… there’s also a third problem with this answer. It reeks of desperation.
Experts have a full customer pipeline, so they charge more
Yes it does. See, a business with a successful product, an expert, doesn’t need to hand out discounts. He or she already has a pipeline filled with customers waiting in line.
By reducing your price you’re telling the customer that you might not be that good at what you do or your product may not be that good. Oh, and there’s also a fourth problem. What kind of customers do you want to work with?
Do you want to work with customers who don’t appreciate your services or products? Or with customers that love your work?
In my experience, in both e-commerce and in consulting, the customers who are looking to save money are the worst customers you can imagine. They will never be satisfied and whatever you charge them will be too much (even though you might have customers paying you even more and being happy with the results!).
I remember an example that Anton Kraly mentioned in his course Dropship Lifestyle. He was giving his students advice to avoid selling cheap products. His reasoning was on point.
He said something like „what’s easier to sell? A $1500 couch or a $100 sofa?“. Many people will assume that it’s easier to sell the cheap product, but is it?
See, the customer purchasing the $100 sofa is more likely to demand discounts. That will reduce your profit margin. They’re more likely to complain about the quality of the products (rightfully so, I mean would you buy a $100 sofa?).
They’re also more likely to drive up your customer support costs. So, what kind of a customer do you want to attract? Especially if you’re selling business to business. Do you want customers who don’t understand that paying you is an investment? You shouldn’t.
How pricing works
The way your pricing works in the B2B world has to do with potential ROI that you can help the customer achieve. If your customer wants to make tens of thousands of dollars, but wants to reduce your price from $3000 to $2000.. that’s a red flag.
Why would someone try to save a $1000 when you could be making them 20, 30 or 40 times that? The answer is simple. Well, there’s actually two different answers.
They’re either not sold on your expertise, or they lack the mindset of an entrepreneur. In the first scenario, you need to help them understand exactly how you plan on making them money. In the second scenario, tell them it’s not a good fit.
A complainer cannot be a successful entrepreneur. An entrepreneur seeks solutions, makes wise decisions and looks to invest and expand. A complainer is looking to conserve and contract, preserve. They don’t believe that future is brighter than today.
They are fearful and have been completely taken over by their limiting beliefs. To be fair, often times businesses might not be a good fit.
For example, if you’re charging a flat fee of $10,000, but your client is a restaurant. Chances are there’s no room to increase their revenue enough to justify paying you. Be honest. You don’t want to do bad work for your clients.
If there’s no game plan to make them a lot more money than they’re paying you, tell them that. You should even recommend someone who can help them and create a win-win situation. Don’t try to charge more for short-term gain.
One of the things that I mentioned in this guide is that if clients come to you, it’s way better than you approaching them. If they’re approaching you through your sales funnel, you’ve had the time to educate them.
You can educate them on the product or service your company is specializing in. You’ve also had time to establish authority and show them that you know exactly what you’re doing.
If you failed to do this, it’s time to update your sales funnel in a way that gets your point across better. Build social proof, build „know, like and trust“ and help them reach their decision.
By the time they decide to talk to your company or you show them the „Buy“ button, they should already know who you are. They should know you’re an expert and that you care.
The problem with „fake it till you make it“
There’s one caveat that I need to point out. Don’t fake it till you make it. Everyone keeps talking about faking until you make. They keep sharing their stories how they lied to their clients and their clients fell for it.
Ask yourself, would you as a business owner go out in public and talk about lying to clients to get more money? Pretending that you were an expert, but you weren’t? There’s only one profitable reason why someone would give you that advice.
They’re selling you one of their courses and they claim that no experience is necessary! Right.. how convenient. You don’t need any experience and you also don’t need to educate yourself.
Watch a couple of videos and you’ll be selling your products and services in no time! What a strategy!
To charge more, you always need to have other options
When negotiating with someone make sure you have other options. More often than not, your body will give you away and they’ll know that you’re not the real deal.
Even if you have some of your clients fall for this BS, what do you think the outcome will be? I know you didn’t fall for this and think that you can charge them five times more and over deliver.
If you actually over deliver, there would be no lying, faking and pretending involved. Most of my clients turn down a bunch of businesses. Yes, they turn down a bunch of businesses.
I do it myself. It’s a common-sense way to filter out those businesses that you know will not be a good fit for your company. Using sleazy sales tactics isn’t going to work for you long-term. How about building till you make it?
Fill up your customer pipeline and make sure you have customers waiting in line. You’ll have no choice but to increase your prices because the demand will be too high.
It’s going to be a way better feeling for you to tell your potential customers „Sorry, but I can’t reduce the price. I always give my best price upfront“.
Focus on “investors” to charge more
As I mentioned before, it’s always better to actually HAVE TO increase the price. If customers are looking to buy and you have limited resources, increase the price.
It will filter out the less serious customers. That’s the way it is. A cheap customer isn’t a terminology that I use for people looking to buy cheap things.
I use it as a mindset characteristic. You want to work with hopeful, optimistic people. People that are willing to invest into getting exactly what they want. Not a little bit of what they want, but exactly what they want.
And those people can be customers for life. As long as you buy into them like they bought into you. I also have to point out that you should have a value ladder.
I spoke about this in my guide „How To Get More Customers Online Fast“, but it’s that important. It’s so important that I will make a policy where I must mention this at least once in my post. Value ladders save businesses.
Value ladders can help you introduce services so that your ad dollars don’t go into the recycle bin. Customers that can’t buy your high-end offers can buy some of your lower priced offers.
These can be digital products which don’t need any extra time from you. Meanwhile your ideal customers will go up the ladder and buy your core services.
To sum it up
You shouldn’t fake it till you make it. You should build until you create it. The best way to charge more is by having leverage.
If your customer pipeline is full and you have customers waiting in line to buy, increasing the price isn’t a thing you want to do. It’s a thing you have to do. When you discuss pricing with your customers, even if they don’t decide to buy from you, that’s OK.
Because you know that there are plenty of other customers that are willing to pay the real price. I will be covering specific sales tactics. But, not cheap sales preached by wannabes. Actual stuff that works. I’ll do it in other guides that I’ll be uploading.
If you have any questions feel free to reach out and I’ll help out.
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