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 and 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 is the now top of the list followed by your RELATIONSHIP. Price now runs a respectable third place.
How do you make this happen?
STEP ONE: FOUNDATION DECISIONS
- Decide what service(s) that you DO and DO NOT offer; Make a list
- Decide what service(s) your NFC (Next Favourite Client) wants to sign up for; Make a list
- Decide what your minimum service deliverables are; Make a list
STEP TWO: DESCRIBING THE EXPERIENCE
The most successful proposals include DETAILS 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:
- Basic Website Landing Page only $1,000
- Standard Website $1,500
- Premium Website $5,000
And each of those options were supported by 10, 20 or even 30 bullets describing what was included and what was excluded?
Would you feel more in control of your purchase? Would you feel more confident about the price you were paying for the service? If the answer to these two questions is YES. Then you have confirmed to yourself that three choices is a better experience for the client.
STEP THREE: POWER OF THREE
You have now created three service-level choices for your clients.
- Was it more work that simply giving a price? Yes, it was.
- Will it result in landing more business? Yes, it will.
- Will your clients be happier working with you? It is very likely.
We have 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.
Why are these two facts relevant? Because when you are speaking with a potential client:
- You already know they are looking for your service
- The client will quickly decide whether they “like you” and want to do business with you
- When the first two are true, the only NO in the room becomes the price
Well guess what! When you offer three prices you eliminate the need for your client to speak with other service providers. You have already offered them three service packages at three different prices.
You have eliminated the competition.
And that is the number one reason why you should always offer a choice of three prices to your clients.
It took time for me to build my pricing choices. I did not do it alone, and you don’t have to either.
To learn more about my 1-1 Pricing and Profit Coaching – Click here
To sample my advice, I offer free webinars to improve your pricing and profit: Click here to browse dates and topics.