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Business Booster – Don’t Sell yourself Short!

When it comes to running a business, most of us are aware that pricing is a key issue and we do our level best to keep our overheads down in order to sell our goods or services at a competitive rate.  That’s great when it comes to products, we all know that canny shoppers are always on the lookout for a bargain.  What’s more, finding products at the cheapest prices is a doddle nowadays with online shopping becoming increasingly popular.  In fact, bargain hunting is one of the key drivers for the increase in online shopping as prospective customers can shop around and compare prices at their leisure from the comfort of their own homes.

When it comes to selling services, however, struggling to maintain low prices is not always the best way forward.  We’ve all heard the old adage “you get what you pay for” and this is very often the case when buying services.  Going for the cheapest available option often means being supplied with an inferior, cut-rate service that doesn’t quite cut the mustard.

If you sell services, either online or offline, make sure that your prices reflect the quality you deliver.  If you go the extra mile in order to provide an excellent quality service, your customers are likely to be hooked on that quality of service and would be quite happy to pay a little more in order to make sure they get the best. 

Pricing based on deliverable high quality makes great business sense – there are plenty of customers who don’t see price as the main issue when looking for services.  Very often, potential customers may be put off by the cheapest available option – they’ll wonder whether the service can be trusted to do a great job, which is often more important than just getting the job done.

Shoppers vary when it comes to what they actually want.  Some are on the lookout for the least expensive option, others are happy to shell out for a mid-price service, while some want the very best available and usually determine this option by looking for higher prices.  This is an issue that you should bear in mind when pricing your services.

Obviously, you need to make a decent living, so trying to offer the cheapest service available will often result in having to work more in order to cover your costs and still make enough to finance your lifestyle.  Charging a ridiculously high sum is likely to put your services out of reach of a large proportion of your target customers – this in itself can leave you struggling to make ends meet and having to spend time and money on marketing in order to attract more customers willing to pay the higher prices.  When it comes to the mid-range of prices, however, most people are happy to pay a reasonable amount for your services which could mean that you make a tidy income. 

If you’re struggling to determine a viable price for your services, why not ask around friends and family to see what they would be happy to pay?  Look online to see what other people offering a similar service are charging – it’s likely to vary, so choosing a mid-point is a great place to start.