Your Cheap Prices Are Bad For Your Clients
When I started my business, my prices were LOW. So low, in fact, that I was working harder than I did in my last job and getting paid less than a third of my old salary.
I wanted to start with a low price to signal my gratitude to my clients for taking a shot on a newbie, and to acknowledge the risk they were taking. And I was grateful (and still am) for those clients who brought me on board despite my inexperience in online business.
But I discovered quickly that a few things happened:
- I couldn’t be generous - with my time, energy, or attention - because I was fighting to survive
- I had to say yes to every project or potential client, even if that meant a risk to my ability to pursue my bigger goals or provide better value to my clients
- My clients were paying me like a VA, so they gave me only VA work. I was happy to do it, and I knew I could knock it out of the park, but I wasn’t leveraging my MBA or experience in project management to help them at a higher level. They knew intellectually that I had that background, but my prices said “assistant” and so that’s how I was perceived
When I raised my prices, things shifted:
- As a team, we’re able to be generous with our time and attention, and we’re actively looking for ways to add more value and delight our clients
- We can focus our energy on the projects that are the best fit for us, so we’re getting better at what we do, faster
- Our clients see A Squared as a strategic partner who can help them move the needle in measurable ways
All of this is good for us. But it’s also really good for our clients.
As you’re thinking about pricing, it’s easy to think that higher prices are automatically worse for your clients than lower ones. And sure, your clients would probably say the same thing.
But you don’t buy the cheapest of everything for a reason, and that’s true for your clients too. They want great results, great quality, and great value - and that might just mean higher prices.
What do you think? Is there room for you to provide better value at a higher price?