When you ask why they didn’t buy from you, prospective customers or clients often say that your prices are too high.
And it could be true.
However, it usually isn’t.
Allow me to explain.
Your prices are probably not the problem
Let’s start with a small sample of far more likely reasons for their decision.
- You could be marketing to the wrong people.
- Your marketing could be failing to clearly demonstrate enough value, making your price seem higher than they expected.
- 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 branding could be positioning you [in the mind of your marketplace] as a lower priced provider than you actually are. This is really common.
- You could be contacting them at the lowest point of their cash flow cycle.
- Your payment terms may not be flexible enough for them.
- You could be responding to enquiries too slowly.
- Your marketing could be suffering from Toxic Complexity. This is dangerous and extremely common.
And there are many of other reasons. None of which have much to do with your prices or fees, and everything to do with your marketing and how you sell your products or services.
It’s a trap!
Lowering your prices can be tempting. It’s a quick and extremely easy way to make your products or services seem better value. But it’s a trap. A trap you need to avoid. A trap that can put your business in a dangerous race to the bottom. You do not want to be in a race to the bottom!
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 product, service or marketing in those key areas.
If you’re not sure where to start looking for answers, the brief list above is a useful place to begin. Try to look at each item on that list from the perspective of a potential client. For example, research your competitors to see how your; services, marketing, payment terms, promises, guarantees, branding and response times, etc., stack up against theirs.
Remember, in many cases, your prospects will have done some research before contacting you. Others will do some research after contacting you. You need to know what you’re competing against.
And make lowering your prices the very last thing you consider.