Pricing is a tough subject – do you charge too much or too little? There are a lot of businesses that simply don’t charge enough, making it really difficult to ever make the business successful. I had some very good advice given to me when I was starting out in my business life – a very successful friend and entrepreneur sat me down and said “Someone has to be the most expensive and it may as well be you. But if you are going to be the most expensive you have to be the best at what you do. Your business has to shine in every way”.
An interesting concept and one that I have tried to adhere to in any business that I have run. I believe that customers are less concerned with pricing as they are with service and value for money. Sure there are a lot of business’ that operate in very price conscious markets. But even in these markets I believe that the same principle applies – people will pay more for quality.
If your business runs on very tight margins it is hard to make it magnificent as so much energy has to be focused on just making ends meet. If you can gradually build your prices up with the aim being to be able to offer better service and a better experience for your customers in general it will pay off.
Charging what you are worth is a hard concept for a lot of people. They charge what they think their customers are prepared to pay and often, the two are a long way apart. If your business doesn’t make enough money it will not be successful, simple as that. If you are just scraping by and not really getting ahead in your business, maybe you are simply not charging enough.
Magnificent businesses are not afraid to charge what they are worth because they can back it up by being the best at what they do.
WHAT CAN YOU DO TODAY? Today is a good day to review what you charge. Look at all of your pricing and see if you can charge more and deliver a better product and a higher level of service.
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