How To Price A Product Or Service
When deciding how to price a product or service, it’s all about confidence.
You know that old saying, “It’s not what she said, it’s how she said it.” How many times have you gotten yourself into a sticky situation by the “how” you said something?
A frequent topic clients want to discuss is what they should charge for their product/service. Pricing is frequently something people stress over, are they charging too little or are they charging too much? The simple answer when it comes to price is you should charge as much as your clients are willing to pay. Anything less and you’re underselling your product/service. Any more, and you may find yourself out of business from lack of clients.
When these questions come up from clients, I get curious to know if the issue is less about what they should charge and more about their confidence in the selling process.
How To Price A Product Or Service Continued…
When people lack confidence in the selling process it often shows up when answering the question, “How much?” For those that struggle with a confident and congruent answer to this question, it’s time to seek some assistance from a mentor, a coach, or even one of your fellow tribe members. Don’t lose clients because you’re not good with the “how” you say something.
For example, when asked for your pricing, the person who responds with, “It depends” and then goes on to give a lengthy answer usually comes off less confident and many times ends up confusing or overwhelming the prospect (people giving this answer are ideal private coaching clients for my business). On the flip side, when asked for your pricing, the person who responds with a straightforward answer like, “It’s $3000” and then waits for the prospect to either ask a follow-up question or respond comes off as confident and congruent.
Of course, the answer may not always be as straightforward as a one price answer, in that case, consider giving the price range, “Pricing ranges from $600 to $3000, $3000 is for private one to one coaching tailored to your specific business, $600 is for the 5 week Savvy Selling class. Which are you most interested in?” Based on what the prospect says next, you now know where to focus the conversation.
Your Savvy Sales Tip this week: How To Price A Product Or Service
Spend time and energy on improving the delivery of your pricing when a client asks. When you answer the pricing question with a confident and congruent voice, your client is more likely to accept the pricing and continue moving through the selling process with you.
Wishing you continued success this week.
Agree? Disagree? Have additional comments or thoughts on this article? Please share.