As a Business mentor in Sevenoaks I enjoy this topic as it is guaranteed to divide opinion.
Competition is everywhere no matter which service we provide or product we supply. At some point you will have competitors. Maybe lots if you are more mainstream and less if you are niche.
How would you feel about increasing your prices today?
This is usually the point where I can here a pin drop in a room full of business owners. Fear of loosing clients is the age-old answer that comes back. I am not suggesting you go out and literally increase your prices today. No, the point of this article is to help you start to think differently to the way you may have in the past.
The are several factors that will help you to increase your prices. The first one is to have a healthy understanding of your target market and what your competitors charge. Do your research and mystery shop them. Get a feel for their customer journey. What are they doing that you aren’t? How do they deliver the overall proposition to their clients? How do they retain them? Once you are better informed it allows you to adjust your prices accordingly. Then once you have a good understanding of what your competitors are up to move on. What I mean is don’t become too obsessed about them. Focus on your journey and what you are doing to change your business. Then maybe check in again a year or so down the line.
Yes, but we are selling a commodity and we all do the exact same thing. As a Business Mentor, I would argue you probably don’t which is why someone else can charge more. Look at how you can add value to your customers. In a way that allows you to show you have a point of difference. Sometimes the smallest of things can make such a difference to a client. Survey your existing clients and find out what you might be able to add, then use this to attract new business at higher prices.
What about the annual increases?
You know the letters that arrive every January from your suppliers with excuses based around well anything. A favourite is inflation, even when it has been pretty static for the last few years. Inflation is running at 2% yet your price rise equates to 3.75%. Many businesses are doing it why couldn’t you?
Its about building confidence around your brand and delivering consistency in whatever you do. Clients recognise these things and are prepared to pay more even when the same thing is available for less elsewhere. There are always exceptions, some people will only ever buy on price. Which is fine but they aren’t the clients you are looking for. You are looking for clients who value what you do and are happy to pay accordingly. What could you implement into your business to increase your selling prices and ultimately your profits?
Experience is a powerful tool when looking to grow your Business. Have you ever considered the value a business mentor could add to you and your Business?
Do you have frustrations in your business? Drop me a line and we can go through the details in a complimentary mentoring session. firstname.lastname@example.org and we can make a start.
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