If you have ever dealt with potential clients, you’ve undoubtedly heard these dreadful words, “I’m sorry, but I just can’t afford you”.
While it can be frustrating to not get chosen to work on a particular project because of your pricing policies, the solution isn’t necessarily that you should think about lowering your prices. Instead, answer these questions to find out how you can keep your prices, and have clients as well:
Are you targeting the wrong clients?
There are two ways of looking at how you are sourcing clients. First, you might be targeting people or businesses that are interested in what you offer, but due to previous asset acquisition, or in-house service developments, prospects might find your services too expensive, because they can already to do it themselves, and the added cost of hiring you, isn’t strictly necessary.
Then, you might also be mistaking an interested party as a qualified lead. If you are unsure how to identify the latter, look out for the following:
· They have done their research about your goods and services and are at your doorstep.
· They have urgency, as in they need your product as soon as possible.
· They state that they want to get things going.
· They have the financial means, and place importance on value, rather than price.
Is your message the right one?
Getting the right marketing message out there is in and of itself an art. One of the first things you should look at regarding your messaging, is whether or not you are focusing on the wrong concept. If you are using words like, “affordable”, “cut-price” and “cost-effective”, and your product is aimed at a higher LSM, you will definitely attract the attention from market segments that won’t align with your offering.
Are you selling inputs, or outcomes?
Everybody knows, at least on some level, that a variety of inputs are needed to get a product or service into the real world. The problem is that many businesses focus on telling their clients this, especially in terms of price – just think of the huge number of businesses who tell the world that theirs is the cheapest service on the market.
So instead of trying to match price, focus on how you can let the outcome of your product differentiate you from a market saturated with input-focused chatter. So instead of cheap, (which is an input), tell the world that your offering will get them home to their families sooner, every day (an outcome), because your product will save them time.
Once you’ve answered these questions, you’ll have a much clearer understanding on what you can do to get better qualified leads, and how to distinguish your product in the marketplace.