You have to balance what you offer with
what your audience wants and is willing to
pay for it.
That's a balance that is more readily achieved
when you know who your target market is, what
niche you serve, the service you provide, and its
value to that market.
There will always be a demand for products/services
at multiple price points. Can I buy the same thing
at a Wal-Mart Supercenter that I can buy at a
specialty store? Sure...I'll end up payiing
more for the same product, but its not so much because
of the product itself, it's the "Value-Added" concept.
Perhaps there's more personalized service, perhaps
there's a more pleasant atmosphere, environment,
perhaps they have a customer service dept that actually
understands customer service, maybe the staff is better
informed and more helpful and has a more pleasing
uniform or demeanor, maybe there's better follow up,
maybe they actually care about providing a better
quality experience, etc.
There's nothing wrong with charging a higher price,
just as there's nothing wrong with charging less. It
depends on what resonates with you, and what
resonates best with your customers. If you're charging
incredibly high prices, the market will sort itself so
the only clients you'll have will be those
who feel your prices are worth what you provide.
And if the value you provide doesn't match
with your prices, there's a chance that will be None.
I've helped people grow their biz and
improve their biz profitability from the
point of not having enough to live on, to the point
of having plenty and then some.
Right now I only charge $397/month for the one-on-one
customized coaching program,
and $147/month for the group coaching (which
includes one personal session per month). That's
a bargain if I can help them build their biz to multiple
times their income over the next year and beyond.
But if people don't see the value in that,
they're obviously not going to pay for it.
I could charge less...I could charge more. Depends
on how I value my services, and how my clients
value my services. As I fill my practice and
get the last few clients I need, I probably
will increase my prices. It's supply and demand.
But for now, the supply (my available time slots)
is still ahead of the demand. So I offer a free intro session.
That's grossly undervaluing my time and knowledge and
skills and expertise. But how can the potential
client know that I'm a good fit for them, and vice versa
if they don't have a "no barriers" method to
try me out and see if we resonate with each other?
I love this discussion thread and
I appreciate everyone's input.
I guess my point is that
people have different reasons and methods for
valuing, pricing and marketing what they do and how.
For most, I would guess that
their pricing strategy is not a well thought
out plan, but more a function of confidence
or just plain ol' inertia - this seems to be working,
why mess with it?
Thanks again for this discussion
and everyone's input.
If I can be of service let me know.