I’ve recently been reflecting on the subject of price versus value in relation to my own life. Of course, we all like to get something for nothing or a real bargain; we wouldn’t be human otherwise. (Just look at what happens in the retail industry during the sales. People have been known to queue up for hours over night outside a store just to make sure that they can get hold of a particularly juicy bargain. In fact, my own Mother was a past master at spotting a good deal a mile off and there was generally a vast quantity of sugar, loo rolls, tinned soup or some other common household commodity in the cupboard, bought when the price was low. Perhaps she should have been a stock broker! However, there’s a vast difference between that and buying on price, particularly when it comes to services.
Of course, with a product it’s easy to see the difference between a cheap product and an expensive one. Take cars for example. You wouldn’t compare a Robin Reliant with a Rolls Royce and expect to pay the same price, would you? Granted, they’re both cars and they both ultimately serve the same purpose; however, the experience you would have travelling in a Robin Reliant is vastly different from the one you would enjoy in a Rolls Royce, isn’t it?
When it comes to services, though, it’s not always quite so easy. For example, for many years, I went to a National Health dentist, who was a really lovely guy and I thought that my teeth were being cared for. However, one day, I looked at a photo of me and all I could see was a mouth full of metal! I didn’t know that there were far more serious dental problems which needed to be attended to.
Fortunately, my vanity got the better of me – thank goodness, because I was recommended to an absolute gem of a man – a private dentist whose technical competence is excellent and only surpassed by his caring and down-to-earth nature. Of course it didn’t come cheap. Not only was he in a position to rid me of my mercury fillings but he was also able to restore my teeth to some semblance of order, without which I am sure that by now I would have lost a few of them; his name is Justin and he was just-in-time! The state of my teeth prior to using the services of the private dentist were described as “supervised neglect” by more than one dentist. After Justin had worked his magic, other dentists marvelled at his work. It reminds me of the expression, “If you think it’s expensive to hire a professional wait until you hire an amateur!”
So if you look at your own business and the service or services you offer, are you focussed on the price or are you focussed on delivering value? If you focus on the price, so will your clients. If you don’t demonstrate the value of what you do, prospective clients will always regard the quote you give as high, no matter what price you offer.
You have to get them to shift from looking at the price of your service to seeing the value of it. Once they understand the value, the price you quote will actually seem relatively low by comparison.
If a prospective client asks me what I charge, I explain that I only work with people who I’m pretty sure I can help. I offer a complimentary True Worth Strategy Session to establish what their challenges/blocks may be in relation to charging and how much money they are potentially leaving on the table by not charging what they’re worth. In this way, I am easily able to demonstrate the value of my service and before I quote them a price, I can discover whether the return on investment in being coached is worthwhile so there is absolutely nothing to lose and everything to gain. So if they understand the value and potential return on investment and are ready to make the change, they will go for it.
Of course, if you want to offer low prices, it’s your choice; personally, I feel much happier knowing that I’m being paid what I’m worth. In fact, one client recently told me that since he raised his fees, he feels happier in himself and his creativity and performance are even better than they were before. This means that not only does the client get even greater value but he also has greater job satisfaction – a win/win situation.
So what are you going to do?
If you have any questions in relation to this article, please contact me on 01202 743961 or 07957 672335 or visit my Contact Vanessa Page to book your complimentary True Worth Strategy Session.