That’s my money you got there bud…
That’s my money You Got There bud.
I remember a time when I used to wuss out when it was about to ask for my money. I know I have done my work and provided services but I really used to wuss out.
It was really a difficult habit to break for me. In my consulting with new entrepreneurs, freelancers, they immediately raised their eyebrows when I asked them to increase the price of their services and products.
I often found out they are eager to under promise and over deliver. Now that’s a great mindset. Heck, I just realized most entrepreneurs are in the business, because they thought they could do the job better than the guy who was giving bad service.
Quality is relative to the price.
This same problem carries over to Internet Marketing. When you’re thinking about pricing, I bet the very first thing you’re likely to do is say, hey, so what is everyone else charging for similar products? And you may go from there.
Right?
Now there’s nothing wrong with doing this at all, but there’s more to think about, and a lot more questions to ask than a simple can I beat what this guy is charging for his service?
Your price doesn’t have to beat everyone else’s out there for you to get sales.
Guy Kawasaki summed it up the best. He says “If you are talking to your customer, then think of it How it’s your money in her purse”.
You’ll go broke by competing on Prices.
You really need to be aware of what other people are charging for their products, but that doesn’t by any means signal that you have to go out there and beat them. Instead beat them by strategy not by pricing.
Here are few rules you should remember.
Rule 1: Premium Products Sell at Premium Prices
So, here’s rule number one. If you have a great premium product, don’t be afraid to bump the price up. You do not by any means have to beat a competitor’s price to be competitive, in fact, by putting your price up, it’s quite possible that you’ll outsell your cheaper competition.
Why? Because a higher price screams quality. Don’t, for one moment, believe you have to have the best price to make any sales. That’s just not true, you just have to have the best sales system, and of course a premium product if you really ever want anyone to buy from you again.
Rule 2: Wowing Through Price Is a Bad Move
The fact is, if your price is too low, people look at you and wonder why the heck you’re charging that tiny amount. They’re saying, “Wow, look at how little that costs. There can’t be that much to it.”
Just try to remember how many times you, your spouse, kids or your friends have bought something because it’s the expensive of the two…
Try to remember how many times you’ve thought “Eh, Its expensive, it must be good”.
Try to remember how many times the expensive product was just ok, yet everybody thought it’s isn’t a big deal. And you defended, but it’s the X expensive brand.
Rule No 3: Don’t Be Afraid
Too many people are afraid to take the leap and price their products as they believe they’re worth. Too many people look at competition and think they have to cost less otherwise no one is going to buy their stuff, or they’ll make less money out of it.
If you notice my consultation service as an example. I AM NOT AFRAID OF CHARGING HIGH. Do you think you can put price on the experience and knowledge I gained while I was building business? Heck No…
If for some reason you are still afraid of charging High… Then first charge high and Add more quality to your product/Service. I have a strong belief that I can Give more than I am charging for. and I do.
So are you going to charge high price for your services/products? Don’t forget quality is relative to the price.
About the Author
Varun Pratap is working in online business as a pro blogger from 2004. His blog on Imbasics (Internet marketing Basics) is all about making money online ethically without resorting to tricks, techniques and gimmicks.
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