How to Consistently Charge the HIGHEST Fees in Your Market
August 25, 2007
Tired of Competing on Price? Try charging the Highest Prices in your Field - THEN EARN THEM! Here’s how…
Too many service providers try to grow their business by continuously focusing on price - in fact FOCUSED on convincing the market that they are indeed the Low Price Leader…
Are You a Leader?
How in the world can someone claim to be the LOW PRICE LEADER. Doesn’t the very fact that they claim to be the lowest price in the market mean that they have researched the market and RESPONDED? And isn’t responsive positioning in the marketplace a textbook trait of a FOLLOWER rather than a LEADER?
By definition, leaders LEAD.
And that means finding that pricing that will allow you to provide the absolute BEST level of support within your market and educating the marketplace as to why it is in their best interests to retain you at a clear premium.
What are some of the immediate advantages to pricing your services at a premium. Doesn’t the market really want to be served at the lowest possible cost? NOT AT ALL! What they want is to be continuously educated as to WHY they are paying the premium and the specific benefit that they receive for choosing to pay additional fees for your service.
Actually, a lot of the defense for higher prices is in the actions the client will take rather than the difference in your service. Let’s examine a number of defenses you can use to establish yourself as the TRUE Market Leader in Pricing - the company with the wherewithal to LEAD with your price and watch the competition scramble to find their place in the leftover space….
This can best be defined as follows..
The Three “C’s” of Raising your Fees.
The first is COMMITMENT. People are much more committed to applying and doing what’s necessary to achieve a result if they’ve invested significantly. So you’re always going to get a much better result if your clients invest at the top end of the pricing scale.
Second, COMMUNICATION. One of the most demanding requirements of any business, and a true value of their clients’ satisfaction levels is the money that they’ve invested in Communication. If you perfect the art of the post-sale followup you will have raving fans, no matter what they paid. If your follow up after the sale isn’t consistent with their buying experience, your satisfaction level will suffer. Charge fees that allow you to invest the BEST in follow up systems.
Finally, CONTINUITY. Who wants to invest and begin a program that isn’t available for as long as you want to be a part of it? Or one who isn’t able to consistently innovate and remain at the cutting edge. You OWE it to your clients to continue to offer products that allow them to grow along with you…
If you plan to be in business for the long haul (and you’d BETTER be or you’ll be devoured by hungrier competition), you owe it to yourself to raise your fees to the highest level possible! Then EARN those fees. Build your fees based on the cost of your clients NOT doing business with you, not from the efforts you put into the process. The net difference in those two numbers is your Value Leverage.
If you’re ready to begin charging 200% - 1,000% more than your currently billing AND having more satisfied clients, implement the above strategies and watch your profits grow accordingly.
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