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How to: not sell yourself short, attract affluent clients, and get them invested

Discussion in 'Offline Marketing' started by Alinea, Aug 29, 2013.

  1. Alinea

    Alinea Junior Member

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    I'm sure you're all aware of the constant talks about pricing and how people keep offering services too cheaply. I've seen plenty of posts telling people to raise them. But people STILL aren't getting it! Yes, it may not make sense, or seems counter-intuitive since people want bargains. But it only seems that way.

    Stop selling yourself short. Attract better clients and get them committed.

    I'll use web design as a example since everyone seems to be a web designer.

    Look. Right off the bat, when people see your cheap prices, they're probably going to think... junk. Cheap solution. Low-quality. Incompetent. New to the game. Little or no expertise. Little/no skill. Little/no value.

    And they'll probably be right. Right?

    You could be good at what you do, but the perception that comes with your low pricing is still there.

    However, if you charge higher prices, people will think you're good at what you do. You must be if you can command those prices. You look successful. Competent. Limited. You look valuable. Skill comes with higher price tags.

    After all, there's a huge sea of cheap designers. They're going to get a headache looking through the flood of thousands of local cheap web designers. But then they see something different. Hmm, this one guy charges higher prices. Interesting. Maybe he's good. He must be.

    Remember that what people want is value. Solutions that solve problems. When the value you can deliver exceeds price, price is not an issue.

    When you cut yourself short, you're going to have small margins when trying to be the cheapest. You're not going to be very committed in your work and in your clients. Your clients won't be committed either. They haven't gone "all-in" to get results. They aren't invested. These are going to be the troubling clients who don't really care. They're going to be late, ask for too much, ignore you, skip meetings, pay late, etc. You're not important to them.

    If you charge higher prices, you're demanding more commitment and the action they take with you. They'll be invested in you and they'll care about working with you. If you buy something pricey, you're going to want to take care of it. You're going to want it to work and last.

    And when you charge more, you'll need less clients. That means less hassle and less time wasted. Instead of running around dealing with a bunch of annoying clients, you can deal with a few affluent clients who understand the value of your services.

    Still not getting it?

    Let's say you charge $300 for a website (though I've been seeing a lot of people charge even less!!). What can you buy for ~$300? A PS3 or Wii-U? Cheap cell phone? Cheap TV? Cheap laptop or computer? Heck, people avoid cheap electronics like those and buy the more expensive ones. So you're saying for the price of a crappy laptop I'd never buy, I can boost my revenue and increase the number of clients I get (hopefully you're offering value and benefits) for years to come?

    WTF?

    People spend that kind of money all the time. It's nothing.

    It's like someone coming up to you with a bunch of Louis Vuitton bags, swearing on their life they're all authentic. They deliver the most mind-blowing sales pitch. The price? $100. What? $100 for bags that retail in the thousands? Instantly, their credibility and competence are gone.

    And you're not going to buy.

    So what do you do? Raise your prices. Obviously there's a whole other issue of quality work. If you think your work is useless junk, fine. But if you can justify raising prices and you know you can provide value and benefits for your clients, do it. Just don't make your prices low because you think higher prices will turn people away.

    When the cheapos want to negotiate... they'll never negotiate up. They'll only go down. But where do you go from $300? You're already near the bottom.

    Those who are in a pricing race to the bottom are only headed to failure.
     
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    Last edited: Aug 29, 2013
  2. elushion

    elushion Newbie

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    While I agree with this, I think the problem mainly lays with:
    A. Attracting bigger budget clients.
    B. Having the clients come to you more frequently (puts you in position of power)
     
  3. lmxftw

    lmxftw BANNED BANNED

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    a 5$ solution to your problem is most certainly gonna attract more problems :) ... do you want to spend 5$ on each little problem that comes along the way or do you want to spend 1000$ on a solution to all your problems ?

     
  4. elushion

    elushion Newbie

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    What do you say but when youve offered the client an amazing website, looks great, but boosts business very little and theve shelled out thousands.
     
  5. Alinea

    Alinea Junior Member

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    Pricing alone isn't going to help you attract more clients. You need to market yourself first. But is a client with a large budget going to pay pennies for services? One thing to keep in mind is that managers or people in charge of budgets often tend to feel they need to use up the entire budget, when really it's just the resources they can use. You can use this mindset to your advantage.

    If that's what they want then I'm not really sure what you think you should say (kinda confused by what you're saying haha).
     
  6. vivadh

    vivadh Junior Member

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    Now I am going to raise my Gig's prices from Five to fifty in Fiverr... LOL ...
    Well OP Very nice post... You are really true.

    "Instead of running around dealing with a bunch of annoying clients, you can deal with a few affluent clients who understand the value of your services."
     
  7. SocialMediaManager

    SocialMediaManager Elite Member

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    Implementation on Ground Is Main Issue

    How many Big Budget Clients with thick pockets are there ?
    And then there are Big Companies to sell them their Expensive Solution