Your prices tell your customer EVERYTHING!

You’re currently sending a very important ‘hidden’ message to your customers. That message is ‘hidden’ in your prices.

Entrepreneurs think that setting their prices is all about how much profit you can make. Of course, that’s true but your prices also tell your customer something of great significance.

Your prices tell your customers how much you value yourself, your product and your service.

There’s gold in those 15 words so let me repeat them:

Your prices tell your customers how much you value yourself, your product and your service.

One of the big Entrepreneur mistakes is setting your prices too low. If your prices are too low you’re obviously losing money but even worse, you’re doing horrendous damage to yourself and your brand.

If Mercedes, Lexus, Prada and Gucci halved their prices tomorrow and promoted the price cut with a big advertising blitz they would almost certainly boost their profits for the year. But they would also destroy their brands in one foul swoop.

Higher prices, backed by effective Marketing, send a subliminal (and sometimes not so subliminal) message to your customers that you have great confidence in yourself and what you’re selling. People are drawn to such confidence and certainty. If you doubt this, go take a trip to Harrods and just watch people and their buying behaviours.

Is it possible that you’re pricing yourself too low? Your customers are looking for quality and value. But they’re also looking for certainty and leadership. We want to be sold to by people and businesses that have confidence in their products and services. It’s true that there’s a minority of the population who always want to buy at the lowest price. But there’s an increasing proportion of the population for whom price is not the key criteria. If you can build a business selling to this group, your financial security is assured.

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