WHERE PRICE DOES NOT COME FROM
In the last section, we just looked at where pricing comes from. You learned that it comes from your self worth, the ability to stand up to yourself and others, and the ability to create value.
Now let us look at the other side of the coin and address where your prices do not come from.
It does NOT come from:
Your competition or what everyone else is doing. Ever hear of the blind leading the blind? What your competition needs to make in their business and life has nothing to do with what you and your personal goals.
They should hold no weight on how you structure your business. And they certainly should not be used as guide on setting your own prices.
Yes, it is very tempting to look at your competitions pricing structure and wonder how you will ever be able to compete with those cheap prices.
And you would be absolutely correct.
You could never compete with their cheap prices and you should never in a million years attempt to match their cheap rates. You build your business to work for you. You can not possibly take what someone else is doing and try to wear it as your own.
Remember, professional pet sitting is a specialized service for the affluent (in frame of mind).
Those are the only clients you should look to attract by offering the exclusive value and experience that your cheap competition does not.
Any client worth gaining will understand your pricing structure if, and only if, you successfully display your value (specialized expertise) throughout your web pages.
This includes greeting your website visitors with a professional looking logo, a well designed website that is easy to navigate, and a look and feel that instantly creates trust and confidence in the mind of your visitor. (This alone has accounted for the vast majority of my pet sitting business success. Achieve the few things listed in this paragraph, and your ideal clients will literally be begging to hire you as their pet sitter – regardless of price!)
Your cheap competition will be surely left behind, and that’s how you will no longer be competing on price.
TRUTHFUL WARNING: This is going to be scary!
I know that these might not be easy changes for you to make, or easy concepts for you to run with.
If you are currently serving some clients right now, you might fear adjusting your prices because all future business may be lost. Maybe you’re thinking “What if I adjust my prices and have zero clients??”
I assure you that adjusting your prices accordingly will not be a negatively deciding factor on the future success of your business.
Fashion Translation: Dress for your figure type, not what is in style. Make sense? :)
National Averages: Again – Who wants to be average? You should have more confidence in your business, service, and abilities so that you are BETTER than average.
Want an even better recommendation?
Why do you have to charge by time (example: $17 for 30-minute visit)? Because that is what the national average uses as the measuring stick?
I encourage you to challenge it! To see what works for you!
For example, I do not charge by time. When my client needs a pet sitting visit, we let them know that there is no time limit. We do the job for as long as it takes. We arrive, we feed, we walk, we play, we clean up, we do whatever else we can, we leave.
We do not watch the clock and our clients love it.
Maybe it is the best business practice to have 15-minute or 30-minute visits. But what will your profit margin be? Maybe it is best to not charge by time and just be there for however long it takes you to get the job done?
Does your hair dresser fuss with your hair an extra 15 minutes if your cut and color was finished early? No. She is a service provider providing a QUALITY job. When she is done, she is done!
Again, think about what value you can offer to your affluent clients (in frame of mind) who expect a specialized, professional service for their furry family member.
What you feel is right or what you would pay as your own client. Often times, you are not your own client. Think about some of the outrageous clients you have.
It is okay for you to provide a service that you would not personally buy yourself for the price. Yes – you should believe in what you are selling, but there are the ‘Lord and Taylors’ of the world and the ‘Walmarts’ of the world. Let me remind you that the rich are getting richer and the poor are getting poorer these days. Dan Kennedy attracts the affluent because the middle class is shrinking!
They both sell clothes, but one has a higher perceived value than the other.
It does not come from any of these three because this is an emotional decision. An emotional decision is not going to support your business for years to come or build equity in your business. You need to make an educated decision with numbers and facts that pertain to you and your life. Not those of others.
Join the Conversation (in the comments below)
Thinking about the places your pricing does not come from, what does your current belief system tell you about these truths? Do you currently agree with these statements? Have you held some of these false beliefs?