They could be.
- You could be marketing to the wrong people.
- Your marketing could be reaching too few of the right people.
- You could be asking people to make a decision, before they have all the information they need.
- Your marketing promises could be too similar to those offered by your lower priced competitors.
- Your marketing could be failing to clearly demonstrate enough value, making your prices seem high.
- Your marketing could be suffering from Toxic Complexity. This is dangerous and extremely common.
- You could be responding to enquiries too slowly (or too quickly).
- Your branding could be positioning you (in the mind of your marketplace) as a lower priced provider than you actually are.
And there are tons of other reasons. None of which have anything whatsoever to do with your prices.
Here’s the thing. Lowering your prices can be tempting. It’s a quick and extremely easy way to make your products or services seem better value.
However, it’s a terrible strategy.
It kills profitability. And it engages you in a pricing race to the bottom, where the cheapest provider wins. They ‘win’ the worst possible slice of the marketplace… low profit customers, who’ll leave as soon as a cheaper provider turns up.
A far better alternative is to find out what’s actually causing people to think you’re too expensive. And to then focus on improving your marketing in those key areas.
If you’re not sure where to start looking for answers, that brief list above is a useful place to begin.