Your Prices Shouldn't Be Affordable
Your Prices Shouldn't Be Affordable
The biggest mistake I see small business owners make when it comes to pricing their new product or service is that they price it way too low.
The culprit behind this mistake is mindset — small business owners price their products with the mindset that their prices should work for everyone.
They want to accommodate a spectrum of customer types who are financially set back, tight on money this month, or think that the product is too expensive.
They think too much about the customers who probably won’t buy from them in the first place and think too little about the raving fans who will buy right away.
Here’s the thing: your pricing shouldn’t work for everyone, it should only work for your target customers, your immediate buyers and raving fans.
That <1% sliver of the general population that’s going to buy your product.
When you have a mentality of pricing for everyone, you will always price too low. It’s a given.
When you accommodate too many people that are not within your target demographic, you water down your prices.
Your Customers Want To Pay Your Prices
If you’ve done a good job of speaking to your target customer and making and selling a product specifically for them, they’re going to align and respond positively to your pricing.
Think of specialized products like Harley Davidson motorcycles or a villa that charges $1,000 /night.
These are expensive to a normal person, but they’re totally worth the price for people who love Harleys or villa stays.
The first thing a shopper says when they don’t know the specialness of your product is, it’s too expensive.
They don’t think that the price of a Harley makes any sense or that an exclusive villa is worth the experience.
All of these thoughts don’t cross the mind of your ideal customers.
Your ideal customers want to pay your prices because they know the worth behind it. They’ve searched and window-shopped and have decided that your product is the only one they want.
They’re actually probably thankful that they found your product or service because it’s perfectly capturing the vision of the experience they were searching for.
Price Unaffordably
Know the difference between pricing for your ideal customers and just shoppers in general.
What’s the price that your customer will pay who values the quality, craftsmanship & materials that are put into your product or services?
What price is that customer willing to buy your product or service at?
Don’t neglect the special skills, value, and craft behind your product by creating a product priced for the mainstream shopper.
If your product is made for a specific type of customer, your pricing should only speak to the experience they crave when they’re strolling through your villa or looking good on a Harley.
Price unaffordably — your customers are okay with it.
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