Are My Prices Too High?

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Have you gotten questions similar to “You charge for that? Why are your prices so high? Do you have a discount?” We’ve all gotten those questions or a similar question. You know your product or service is good. You’ve seen the positive impact on people who’ve bought or used it. So why are people asking you these questions? You’re frustrated and wondering what to do about it. Should you lower your prices?

 

The answer is likely no you shouldn’t lower your prices. You’re getting that question for three main reasons.

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1) They’re not your target customer or client.

Your product or service is a solution for a major problem your target customer or client has. If the person doesn’t really need your solution, then they’re not too eager to buy your product or service. They can take it or leave it so if they can get it cheap then yeah maybe they’ll buy it. However, if not then eh they’ll leave it. That’s ok, let them walk away. They’re not really your customer. Your products or service isn’t for everyone.

 

Get crystal clear on who your target audience is and what they need aka their major challenge. Ask them.

 

2) You haven’t shown the value of the product or service.

The price isn’t the value. The price is just the amount of money the customer or client needs to invest in order to obtain a solution to their problem. However, the value is how useful it is to them and how much they want it. Really show how the product or service will benefit them. Don’t make them have to think and deduce the value for themselves. Connect the dots in a very easy and logical way for them.

 

Don’t just list the features of the product or service. Explain the benefits, how it will help them.

 

3) Your brand doesn’t match the pricing.

Your brand is how the potential clients and customers view you and your business. If your brand communicates that you’re the place to get a deal or discount, then that’s who you will attract. People who are simply looking for the cheapest solution not the best fit. You can’t brand yourself as a discount solution and then charge boutique prices. When you do that you’re drawing the wrong audience for your products and services.

 

Your brand should match what you offer and sell.

 

Having cheaper prices is not a business model. There will always be someone who can and is willing to price similar products and services at a lower price. Price your product and services at a fair investment. One that is fair to you and fair to your customers.

 

You will continue to hear that question or complaint from time to time. However, trust in the fact that person is not your customer and also trust that you used a formula and pricing technique to create fair prices. As you’re clear on your target audience, showing the value and positioning the products and services, you’ll hear it less.

About Dr. Maria James

Dr. James, The Money Scientist, has expertise with designing income management, debt management, and wealth strategies to help you live your best life. She is the founder of Pocket of Money, LLC and the creator of The Wealth Protocol™. Dr. James has also been a guest financial expert on ESSENCE, WEAA, Madame Noire and more.

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