If you find that many of the prospective clients or customers you speak with are fee-sensitive, I’m going to share 3 ideas with you today, which can really help.
A quick look at ‘value’
I want to start by looking at the way your prospective clients think about value:
- It’s always too expensive, when the price or fee is far greater than the value.
- It’s always great value, when the price or fee is far lower than the value.
To get that price / value balance right, we have 2 options. We can either pump more value into the offering or we can lower the price. Most small business owners focus on lowering prices or fees, in order to make themselves appear better value. This is why we often see competing businesses in that dreaded ‘race to the bottom’, where business owners elect to out discount one another.
Here’s the thing about slashing your prices: Your prospective customers or clients can go to Google and find 20 lower priced alternatives to you, in minutes.
Here’s the thing about increasing your value: High value providers are rare. Rare value comes at a premium.
3 things to consider about fee sensitive prospective customers
If you are speaking with prospective clients or customers and you find they are often fee sensitive, here are 3 areas to look at:
- Have you pumped so much value into your product or service, that your price represents excellent value for your prospective customers? We can sell a great product or service for a great price, but we can’t expect people to pay a premium, for something that’s average.
- If you have pumped a ton of value into your product or service, have you clearly demonstrated it with your marketing messages? In other words, when people read your marketing or speak with you, can they easily see a clear reason why your services are of great value?
- Is your marketing attracting the right type of leads or enquiries? You can have an amazing service, offered at a wonderful price, but if the people responding to your marketing can’t afford it, you’re wasting your time. A diamond ring that’s worth a million dollars, would be amazing value if offered for sale at $100,000 – But if you’re trying to sell it to someone, who is broke and lacks the ability to raise the money, they can’t buy it. Make sure you’re reaching the right people with your message.
Getting the value balance right
Lowering a price is easy and requires little creativity, however, just because it’s the easiest way to make your offering look like better value, does not mean it should be your first option. Check you are attracting the right people with your marketing and ensure you are clearly highlighting your value in your marketing messages. Finally, always look for ways to pump more value into your offering.
The greater the value, the higher the demand.
The greater the value, the happier your clients / customers will be.
The greater the value, the more rewarding your business will be.
Photo: Neville Rodgers
Latest posts by Jim Connolly (see all)
- How stories help you grow your business - March 8, 2014
- Who are you selling to? The answer may surprise you! - March 7, 2014
- How to get all the help you and your business need - March 4, 2014