10 Reasons Why You Should NEVER Compete On Price
Have you ever been tempted to compete on price to give your business a little boost?
Then THINK AGAIN – undercutting your competition to win more business will create ‘waaaaaaaay’ more problems than it actually solves… here’s why
Here’s my top 10 reasons why you should NEVER lower your fees to attract more clients, no matter what.
Reason #1: Low fees attract low quality clients. You’ll attract those who are more concerned with price than they are with results. Oh yeah – those folks are definitely not FUN to work with either.
Reason #2: Low fees repel high end, value focused clients. Not only do low fees attract the wrong type of clients, but they also actively push away the potential high paying clients that you’re eager to serve. Talk about a double disaster!
Fees…. Here’s something to think about….
When was the last time you took a ‘significant other’ out for a fancy meal to celebrate a (really) special occasion and you picked the restaurant with the lowest prices? (And if you said “last week” then we need to talk!!).
When you’re seriously concerned with what you’ll receive, more than what it will cost, then you’ll rarely go for the “cheap” option.
And clients are like this ALL the time. They care much less about the cost and much more about the value. And when they see low fees they automatically assume that the service must be lacking in value, too.
Reason #3: Low fees attract clients who don’t take responsibility for their own outcomes, and who seek to blame YOU instead of looking at what they could and should be doing to get results with your service.
Reason #4: Low fees will attract clients who constantly complain, and pick holes in how you deliver your service, no matter what you do. You could give them gold plated Caviar at a client meeting and they’d still complain! High paying clients on the other hand are FAR too busy to worry about complaining – they’re busy getting RESULTS.
Reason #5: Low fees will attract clients who will expect you to continue to provide your service, even after they stop paying you. Oh yeah – and they’ll constantly push the boundaries of what you provide with your service leading to even more OVERWHELM for you.
Reason #6: If you let your clients pay low fees then expect to have collection issues on a regular basis. You’ll be amazed at how your high paying clients will pay you on-time, every time, while SO many of your low paying clients develop ‘forgetful memories’ about the payments they’ve promised to make.
Reason #7: Charging low fees means you get less commitment from your clients. Rather than being ‘all in’ they’re instead ‘half out’. The size of a client’s commitment and follow through will almost always be equal to the size of their investment (HINT: the more they pay, they more they’ll actually DO to get results from your service!).
If a person hires two coaches, and one charges $10,000 while the other charges $100… you better believe that they’ll follow through on everything the $10,000 coach shares while at the same time frustrating the life out of the $100 coach.
Which service provider do YOU want to be?
Reason #8: And because they’re not fully committed they won’t follow through… and because they don’t follow through they won’t get results. And guess what? They’ll blame you for this, too!
High paying clients always take responsibility for their own results but it rarely matters since they also almost always take action and get the outcomes they need.
Reason #9: Attracting low paying clients means more work. For a start, you’ll need more of them since they’ll be paying you less. Secondly, they’ll just be SO much more demanding.
You’ll hardly ever hear from your high paying clients because they’ll be too busy doing the work and getting results.
Reason #10: Low paying clients won’t send you referrals, testimonials, or case studies whereas high paying clients won’t stop sending these to you (you’ll get them DAILY!).
And the GOOD NEWS is that it’s just as easy to compete on value as it is to compete on price.
So why choose the road that leads to less profits, more stress, and less fun… when you could so easily do the opposite?
It seems like a bit of a NO-BRAINER to me!
If you need help with Strategy – Call Us.
We can get clarity on the value that you offer and the bottlenecks in your business (including the odd “blind spot” that’s probably completely invisible to you) that is holding you back.
Get in touch today if you’re ready to boost your business success.