Call for your free consultation: 1 855 847 5529

Recommended sites

When starting a business, many people believe that if you build it, they will come

When starting a business, many people believe that if you build it, they will come. People also think that if it's cheaper, then you'll definitely get more business. It kind of makes sense and for the longest time I felt the same way.Tanget! Wanting to finally revise the outdated style with my existing blog. Views regarding the style of http://outlandoutfitting.com? Truly a capable manitoba outfitter if, perhaps required in the Manitoba territory. Send a remark. With thanks!Imagine this: you're about to open up your own hair salon or barbershop. In order to get people in the door, you give away free haircuts. You get about 100 people in your shop that week, but then the very next week you go on to say it's $50 for a haircut. How many of those people do you think will return to get a $50 haircut? Not too many, because you've just confused them on your value by your price.Your haircut and your expertise may very well be worth $50, but you've essentially trashed your value by giving your product away for free. So what's the right way to make them live together?

Freemium is being abused

A lot of small business blogs and design blogs will tell you that in order to be successful, you have to give away something for free. Its something I agree with, even. The problem is that you're giving too much away for free.Freemium is about increasing your value or your worth. You cannot increase your value by giving your sole service or product away for free. You may get lucky, but that's not it. The idea is to give away a service or product that helps contribute to your worth. For example, if you're charging $50 for a haircut and I'm used to paying $15 for a haircut, you have to sell me on the value of a $50 haircut. You can do this by giving me a free consultation and telling me how your haircut will enhance my look or improve the damages on my hair.Now you may be wondering, if that's the case, how do designers and developers get away with giving away free wordpress themes and PSDs? Because there's a much bigger picture there someone like Orman Clark signs you up to his e-mail list where he can blast you his brand new product. It helps build trust that you know he knows what he's doing, and if you want more features, you'll pay for it. Thats also probably not the only stream of income, so those types of freebies are a foot in the door type of thing.However, if you have one service or product to offer, don't give that away for free. Give it's compliment away for free and build that trust and make that connection so people have no problem paying whatever price you ask.

Are you being lazy?

Real quick: My biggest issue with cheap prices is people automatically feel like the discount prices and people just pop up and want to buy because its cheap. This almost never happens (unless the product is in HIGH demand) and then owners want to cry and moan about having no business. Well, heres the problem: you didnt promote or market your business.Ive seen it way too often. People believe that just because its cheap, they dont have to do work. Believe it or not, thats not the case and if you are not establishing your product or service at all, chances are potential customers dont even know your offering exists. Ive been there and done that: no one will even care about your prices if youre not even promoting them. And then the next issue is whether or not the price and value work well together.

Competing off price will never work

I try to tell most of my clients never to compete off price especially if they're just starting. Why? Because someone always has the resources to go lower than you and stay in business, while you dont. Plus, pricing competitions just do not add value. If it's cheap, I don't have the highest expectations of it. And if it does surpass my expectations, I'm probably willing to pay a lot more so don't cheat yourself.Cheap pricing also attracts a cheap customer. Its easy to be stereotypical of cheap people (and there's a difference between cheap and frugal) but to be sweet and concise, I don't think it's the type of person you desire to build a business you care about around. There is no value to them and they treat it as such and treat you as such.Ive always had an issue with pricing. I come from a background where money was not readily available and I didn't like paying a lot for something. So I had always priced myself way less than I was worth and tried to brand myself as cheap and affordable for businesses. That was a bust.Those clients we're horrible. They didn't respect me, paid me when they wanted, we're always nickel and diming and then when I looked up from the amount of work I was doing, I was getting pennies. I had no value to them because I was cheap. As I've raised my prices, I have to deal with way less headaches, and have increased my value.Keep in mind that value is not always related to price and depending on your ideas and business plan, different strategies may work. Your value can be directly related to your quality of work, but the idea is that they go hand in hand because people tend to put those things together. Never price yourself too cheap. I think you should price yourself higher than what you're thinking and see what kind of feedback you get, or consistently raise your prices until you've hit a ceiling. After all, who doesn't want more money in their pocket?Thanks readers! I personally told a relative that we would absolutely reference this capable brochure printing services, http://printingpeach.com inside a new blog post. If perhaps you'll be hoping to find a print company within the greater Ontario area, they really really are excellent.Oh, naturally I must explain the overview to this important post was brilliantly presented by Clay at Clays lawn and snow. They absolutely are a brilliant sod Installers. I invariably value a fantastic tip!

Contributors

http://snowremovalfast.ca - Your understanding is astounding :) Thanks for giving.
http://childrensdentalhealthcare.com - Really good business resource.

Posted in Law Post Date 01/01/2015


Comments

Name


Email


Website


Comment


Recent Posts