If you have ever wondered why you should offer three prices to your new and existing clients. Read on!
Pricing is a prickly process for every business but it is particularly challenging for those of us in the service industry. We worry that if our prices are too low, we won’t be profitable. We are afraid if our prices are too high, our clients will leave us and we will go out of business. In a nutshell:
Pricing = Stress + Anxiety
The good news is that you can take steps to offer better choice to your clients. When a client chooses to work with you, price is no longer the number one decision-making factor. Your service and relationship take precedence with pricing coming in third.
How do you make this happen?
Step One: Foundation Decisions
- Decide what service(s) that you DO and DO NOT offer; Make a list
- Identify your perfect client and make a list of their traits, qualities and budget range
- Decide what your minimum service deliverables are; Make a list
Step Two: Describing the Experience
The most successful proposals include detailed descriptions about the services provided, the timelines, the expectations and the restrictions. To amplify what I mean when I talk about details, here is an example:
❌ FROM A WEBSITE DEVELOPER: “I will design and build a custom website for your business for $5,000.”
Would you be compelled to make this purchase? I hope not. There are SO MANY unanswered questions!!
- How long will it take?
- Where will the content come from?
- Does it include an online store?
- Where will it be hosted?
- What if I don’t like it?
- and on and on
Now what if that same Website Developer offered you three choices with each being supported with 5, 10 or even 20 bullets detailing the inclusions and exclusions?
✅ Basic Website (Landing Page only) – $1,000
✅ Standard Website – $1,500
✅ Premium Website – $5,000
Would you feel more in control of your purchase? More confident about the price you were paying for the service?
If the answer is yes. Then you have confirmed to yourself that three choices is a better experience for the client.
Step Three: The Power of Three
You have now created three service-level choices for your clients.
✔ Was it more work than simply giving a price? Yes.
✔ Will it result in landing more business? Yes.
✔ Will your clients be happier working with you? Very likely.
End Result
We’ve all heard the phrase, “People do business with people”.
There are endless variations to this quote, but at the core of it, when we are talking about services, people choose to do business with people that they like or that make them feel good. We all have favourites that we gravitate to. Our favourite restaurant, preferred airline, hotel, lawyer, doctor, dentist, hair stylist, etc.
Another rule of thumb we have all been counselled to live by is to always get three prices before making a purchasing decision.
By offering three service packages at three different prices, you eliminate the need for your client to look elsewhere.
Final Takeway
When you present three pricing options, you eliminate the competition. Instead of looking for alternatives, your client will focus on selecting the best fit from your offerings.
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Smart people know what action to take. Successful people take action.
Let’s start with a conversation. Schedule a free consultation today to explore how you can improve your pricing by better defining the value of your offerings. Click here to book now.
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About me
Jennifer has successfully navigated change throughout her entire career—from ledger paper bookkeeping in the 1990s to today’s cloud-based, real-time financial solutions. She helps business owners better manage their pricing to ensure a profitable retirement. Her accolades include:
- Certified Profit First Professional
- Certified Fix This Next Advisor
- Intuit Global Firm of the Future Runner-Up
- Top International ProAdvisor (2019) & Multi-Year Top 100 ProAdvisor Awards
- Top 50 Cloud Accountant
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