You’re not charging enough
Most people don’t buy on price, even though we sometimes like to think we do because it’s the logical thing… The fact is, the majority of our buying decisions are based on emotions…
Our decisions are emotion based, we then use logic to justify the decision…
It stops us feeling silly for spending a ridiculous amount of money on a new gadget or item of clothing…
If people did buy on price the no one would buy Rolls-Royce cars or Jimmy Choo bags or holiday in Barbados; they would eat at KFC or McDonalds, shop at Charity shops and holiday in Withernsea, having driven there in an old banger. When I went to a well known Michelin 2 star restaurant last year it was full, when I asked a car dealer friend why there appeared to be so many Range Rovers about he said: It’s because there ARE lots of new Range Rovers about!
So you might be thinking…
Yes but SOME people DO buy on price… Surely if I raise my prices I’m going to miss out on business!”
Maybe so…
But if you think about all the worse clients you’ve ever had… I’m talking about the slow payers, the no payers and the whiners…
I bet they all had one thing in common… They moaned about the price then demanded more from you…
The thing is, ‘Price Buyers’ don’t just stop at low prices!
I can’t understand why someone haggles on price when they aren’t actually going to pay anyway… but they do!
The second thing about ‘Price Buyers’ is that they have no loyalty…
Why?
Because the moment someone offers a lower price, they’ll take it. And someone will always offer a lower price, because there’s always someone willing to work for less money than you are…
And a third thing… ‘Price Buyers’ are extremely slow to pay (if they ever pay at all).
Often this is because they’re just tight, plain and simple; but usually it’s because they have no money…
The problem is, especially in the beginning we find it hard to turn business away and so will bend over backwards to serve these ‘Price Buyers’.
Which means, you spend your time serving clients who don’t appreciate the true value of what you do. Who have no loyalty to you and will leave as soon as someone offers them a cheaper deal.
And who never pay on time, if they pay at all!