Increase your prices. Boost your sales!

Your pricing is a critically important part of your marketing. And today, I’m going to recommend some of you consider increasing your prices or fees.

Here’s why a price increase could be just what you need.

Why so low?

When your marketing positions your product or service as high-quality, your prospects expect your price to be within that high-quality price range. They expect value for money, and when your price is too low, they begin to question the actual value — why so low? Today, this pricing error will see small businesses everywhere missing out on sales or new clients.

It’s a serious error that often creates a negative spiral. It looks like this. Their lack of sales causes them to further lower their prices, which makes things worse. So they try another price drop in an attempt to get ‘some’ money in. That’s unsustainable.

If you suspect you could be undercharging, here’s a suggestion. Take a balanced look at the value you bring to the marketplace. Clearly state that value in your marketing. Then set a price that reassures prospects, while also representing outstanding value for money. And finally, measure the results.

In case it doesn’t go without saying, this advice is general. It’s not intended for everyone. In my experience, small businesses are more likely to be undercharging than overcharging. Though obviously not all of them. Some small business owners reading this will already have perfect pricing. Others will be pricing too high.

However, if you have reason to believe you could be undercharging, you should absolutely consider an increase.

Photo by Teuku Fadhil