Are you being price shopped?
When you’re low on work, do you lower your price just to keep the wheels of your business turning?
Lowering your price isn’t just about making it affordable for customers or just about you keeping your staff employed. Your price plays a crucial psychological role in the value of your product, as valued by your customers. Your pricing strategy is a direct communication to customers, telling them how much your business and your brand are worth. Perceived value is instantly created in the minds of your buyers.
So, when you lower your price, you reduce the value of your brand. And you can come across as desperate. That doesn’t inspire confidence.
If this describes you, it’s time to reconsider the value you’re providing to your market.
Here are five ways you can sell value — not price.
1. Stand out
People make purchases based on what they see and hear. Is it you or your competition that they’re paying attention to?
It’s not enough to use words on your website to explain your product or service; you also need to show how you’re different from your competition. Can they see and hear you? What distinguishes you from your competitors? You need to provide your customers with a reason to choose you above your competitors based on something other than pricing.
How do you go about doing that?
Take stock of your abilities first. Consider what you know you can contribute in terms of expertise and experience. Are you an expert in a particular field? What areas of knowledge do you have? Make a list of the things that distinguish you and boost your worth.
2. Choose your customers carefully
Not every customer is a good customer!
You want to make sure that you are the one making the decisions, not the other way around, in every deal you close. Don’t let the client take the reins. So, choose clients who appreciate your value. Business is even more challenging when dealing with people you don’t like.
By demonstrating your company’s ability to deliver on its promises time and time again. What distinguishes you from your competition is your unique selling point. Is it your after-sales service that you offer that no one else does? Is it your turnaround time? Is it because of your marketing? Determine what advantages you can provide that your competitors do not.
Determine who your ideal customer is. Make a list of the qualities or characteristics you want to see in the people you want to be clients and target your marketing strategies with them in mind.
Allow them to see the distinct advantages that you have to offer: then you’ll be able to charge what you’re worth.
What if you meet people who want to do business with you but just don’t fit your criteria? Don’t accept them. Don’t lower your standards just to accommodate them.
If you stick to your criteria, you’ll show your market that you don’t work with just anyone, increasing your perceived worth and, as a result, your profits.
3. Improve Your Perceived Value by Setting High Standards
Maintain a high quality of excellence. Lower it, and your perceived worth plummets. You may occasionally deal with a buyer who has no intention of buying from you, so learn to tell the difference between a serious buyer and a tyre kicker looking for the best offer.
Value is the trade-off between the perceived benefits derived from your business solution and the price the customer is willing to pay to acquire it.
4. Have high-value conversations.
The conversations you have with your customers should be packed with so much value that they actually thank you for speaking with them and look forward to having more conversations with you.
You ask insightful questions that help get clarity around their pain and what they’re looking for. Answer the questions going on the minds of your future buyers.
You will become invaluable if you sell value rather than price.
5. Turn away price shoppers
If selling for the lowest price is your business plan, then go for it. If this isn’t your business strategy, you’ll need to turn away customers looking for the best deal and instead focus on generating the value you and your company were established to provide.
According to research, just 15-18% of purchasers use price as their key decision factor when making a purchase. That obviously demonstrates that the bulk of your clientele value the services you provide. They’re willing to pay for the advantage they think you can provide. So don’t fall into the trap of decreasing your price. Instead, focus on enhancing your worth.
Use these five strategies to increase your value and redirect your clients’ attention away from your pricing and towards the benefits you provide, so you can charge what you’re worth.
You won’t regret a Sales Strategy of Selling Value over Pricing!
What’s the bottom line? Value, not price, should be the selling point.
Over to you
Do you want to know more? Or perhaps you have questions?
Schedule a FREE consultation with us to learn how to sell on value rather than price