Are you an Entrepreneur? Congratulations!!
You have already come far enough, from initiating a mind-boggling eureka moment to making it a reality. Even after such religious efforts, do you find yourself on a flat graph towards success? Are the revenues all stable? Have you tried to fix a proper system and yet the chances to scale seems to be bleak?
If yes, this one is for you!
The basic mistake every newbie commit is to slash down the prices. Price war may show you results, but it’s always short lived. On lowering the price band, there might be a sudden boost in your revenues and customer base. However, the question is, how long will you survive?
Let’s walk through some other growth booster strategies which would not make you repent your decision in the long run:
Expressly elucidate ‘However.’
It is perfectly alright to charge a higher price than your competitors. Don’t lower the bar in haste, rather embrace it. Acknowledge your high price with laying emphasis on the conjunction ‘However’ or ‘But’.
You need to explain your clients the reason behind the premium charged, expressly. Always add the word ‘However’ followed by a value statement in your pitch.
The idea is to focus on value, focus on greater customer satisfaction, on higher quality services. Make sure you voice this idea, loud and clear in your marketing strategies by using the conjunction to your advantage.
People out there do not mind paying more, if their life is made a bit easy.
Flaunt your Achievements
The key is to flaunt it right. Tell your customers, if you have higher customer retention rate in the industry? If you have the maximum after sale service outlets? If you had some high- profile clients? If your product has won some recognition? If you have won some awards?
Get the word out there; people value it more than they do their money. When they understand and associate with what they are paying for, they can settle for any price you offer.
Tout such information on your social handles or website. It not only builds credibility but aids in overall product recognition.
After all, people listen to others, about your product, more than you explaining them. So tell them outright how others who have used it before, find your products spectacular.
Make Spy-ing an integral part of your Research
Keeping an eye on your competitors is as important as minding your own business. Before you work on differentiating your product or price scheme, you need to work out on what your competitors lack or expertise in.
Spying should be part and parcel of your planning. Expand the scope, apart from focusing on the product and services, track down the keywords they target, lucrative offers. There are many online tracking tools and websites available, use them like www.buzzsumo.com or www.Spyfu.com, etc.
After spying, try and create differentiation. Offer something apart from a lower price for free, simply distinguish your company from other market players.
Divide and Rule
It time to divide, segregate your products and services into different tiers like silver, gold and platinum package. Different packages of the same product and services at different prices.
Always initiate your sales pitch from a premium package, and gradually settle for a lower one. It brings a sort of mental satisfaction in the minds of customers who think they won the negotiation battle, and you end up selling the same gamut of products and services.
You end up dividing the customer base and capturing the customers from various strata.
The more you add value to others, the more you become valuable. It is then the price does not matter. Before you have the urge to change the price tag, think about your long term goals.