Are you unsure about how much to ask clients for your offer? If you fear overvaluing or undervaluing your services, these tips will help you overcome it.
Do you know what frequently impacts sales and profits? It’s how you price your offer.
The fact is that it’s always important to align your price with the value provided to your clients.
Ask too much and you can turn away clients. But ask too little and you can get stuck with awful long-term relationships.
Fortunately, there are some things that can help you get it just right.
If you want to price correctly for both you and your clients, here are the ways to do it.
Tip #1. Know the Market
Some people have limits on how much they’re willing to spend on the services you offer, so look at how much they’re willing to pay.
Additionally, find out what competitors are charging for similar services. This will help you estimate how much you can charge when coming up with a fair price point.
A little market research goes a long way.
Tip #2. Quality Matters
If you offer superior services, don’t be afraid to charge extra.
Once clients do their due diligence, they’ll understand what separates your business from your competitors.
And if you offer the best solution for their unique situation, they will accept paying a premium on your offer. They’ll see it as a better offer even if there’s something cheaper on the table.
Why?
In the end, most clients will seek out the best advice and strategy. If you can help them make more money and transform their lives, it won’t really matter how much you charge – it’s worth it for them.
Tip #3. Account for Your Costs
There are always costs to running a business. So before you price your offer, you should go through all your expenses.
How much does it cost you to dedicate one or two hours of your day to one client?
Are you working on a more complex project and you’re stepping into overtime work?
Do you have to master some new skills to help your client?
Sometimes, you have to invest more than time to guide your clients and give them business advice. If you do an implementation, that may involve travel. You may also have to use specific software, and so on.
Before you think about pricing your offer, always work out your operating costs, too. These may seem small in financial services, but they can quickly add up if you have a sizable client list.
Don’t Forget About Your Goals
Every business owner wants to be successful. And the financial industry provides many opportunities to do so.
But when the time comes to price your offer, you have to take extra care.
While you don’t want to take on underpaying clients that eat up all your time, you also want to avoid forcing premium prices just to build wealth faster. What you may not realise is that pricing often factors into your reputation and market position.
If you can deliver a fair offer, you’ll get the clients needed to grow a sustainable business.