Most businesses under-charge for fear of losing a sale ‘on price’. You should not compete on price as there will always be a bigger competitor who has bigger marketing and buying power. Compete on everything but price (eg quality, responsiveness, flexibility).
By increasing your price, you increase your turnover and profit margin without working any harder.
Here are 15 ways to put up your prices, some more ethical than others!
On an annual basis – eg 1st Jan.
For clients you don’t want to work with.
For scarcity value – eg your time.
For exclusivity/by adding value – eg Gold Star membership benefits.
For premium price products – eg top of the range.
For environmental/green products – eg Fairtrade.
According to demand/timing – eg aircraft seat pricing.
According to clients’ ability to pay.
According to value-added/benefit to the client – eg charge more if the client sees big rewards.
After raw materials price rises/in line with inflation.
Bundle products together – eg coffee/cake/champagne package.
Repackage the product – eg shiny new wrapper.
Focus on a niche – eg software for accountants.
Charge for what was free – eg first meeting, audit or consultation.
The Best Way: Sell a product that blows away your clients by focusing on clear benefits and by delivering a remarkable service.