Is Your Pricing The Best To Get New Customers?

It has nothing about offering cheap prices. It is about strategy.

Does your pricing compliment other parts of your marketing strategynew customers pricing

Or is there a disconnect?

Each element of your marketing strategy plays its part when you want to get new customers.

If they are in perfect harmony, it makes it simple for potential customers to move along the buying decision process.

When they aren’t it makes it harder for you when attracting customers.

And it adds complexity to your business and for your customers.

The disconnect and complexity creeps in when you look at the different elements in isolation and forget to see if they work well with other elements.

For example, it is not uncommon to see businesses offer quality products or services. This quality sometimes goes overboard to develop the relationship with new customers.

However when the same businesses have a low price or lower price than the rest of the market it doesn’t fit well with the high quality products or services.

To potential customers it may look like a bargain, however problems can arise when you want to increase your price later on. Naturally customers would expect the quality or other aspects to increase as well.

As well with a low price and high quality you can be attracting the wrong type of customers.

Are they in harmony?

High quality + low price = complexity

When you develop your marketing strategies you want to get rid of any complexity as it can affect your business growth.

If you find there is a disconnect you may want to ask yourself why.

Is your pricing is one of those funny things especially in services. And it can be your perception of what customers are prepared to pay versus the reality of the market.

For some of you the level of your pricing may be a sensitive issue and if it is you may want to ask why that is. If you sell a service ask yourself if you would be as sensitive if it was a product you were selling.

When you want to get new customers price plays a part, it always has and today as customers are savvier they do look at what they will get.

The main thing is do not let your own perceptions dictate what your price is.

There are ways to be flexible with your pricing to get new customers and one is to offer different options. It can still fit well with your strategy and attract customers.

Be objective when you develop your marketing strategies, make the necessary changes and you may find you have the business growth you are looking for.

As always over to you. How do you set your price and do you look at all factors?

Do you want to get new customers? If you do, I can help. Click Here to see how.

photo credit: Cranky Pressman via photopin cc

20 Responses to Is Your Pricing The Best To Get New Customers?

  1. Don’t customers already assume that businesses offer quality products and good service? What company wouldn’t claim that?

  2. by Lewis Carroll written in the 1800s). The same can be said for effective planning and implementation by circumspect hospitality leadership. The hospitality industry offers products and services that are often “me-toos” and similar to undifferentiated commodities such as salt or gasoline. Anybody can spend the money to build a beautiful hotel, but not everybody can produce superior service quality. And, meeting customers’ expectations, as we have seen above, translates into service quality.

  3. Mike Morris says:

    . The customer experience is defined as the aggregate of all the interactions that customers have with the company’s products and services. For example, any time one buys a product, one forms an impression based on how it was sold, how it was delivered, how it performed, how well it was supported etc.

  4. Susan — pricing is the major issue for most businesses, especially small businesses. I’ve decided to be the high-end provider when writing a blog — if you want a post written by someone on Fiverr, be my guest. I offer the skills to help shape the brand and messaging that only comes with experience.

    If a business presents a proposal and the prospect/client feels the cost is too high, don’t lower the cost for the project. Instead, eliminate one of the components but keep the price the same for the other components.

    That’s why I like to write proposals in modules. Prospects can then see exactly what each element costs. They may decide the pricing is right when they see it broken out. Just presenting a grand total could scare them off.

    If you’re just starting out, of if you’ve hit a lull in your business, you may need to do what the airlines do, “yield management.” That is if you still have a lot of seats to sell (read you don’t have enough business) then you may need to reprice your services accordingly. In the end the market, and your personal circumstances will determine your pricing.
    Jeannette Paladino recently posted..In Designing a Website for Mobile Viewing Where is “Above the Fold?”My Profile

    • Great advice from your experience Jeannette and the module idea makes a lot of sense. The only thing about airlines and yield management is they people come to expect it. Agree about the market and your business will determine pricing.

  5. Catarina says:

    Agree with what you write, Susan. And with what Leora writes.

    Have just started a new company and am not about to charge low prices since it would not make sense

    Will however offer one company that is well known a one off offer of a low price because it should give me much more business not only from them but from other prospective customers as well.
    Catarina recently posted..Do MBAs harm the economy?My Profile

    • Congratulations about starting your new company Catarina and I am sure it will be a big success. Is there a reason why the one company wouldn’t pay your normal prices?

  6. Arleen says:

    Hi Susan,
    The biggest problem with low pricing is that your customers expect it all the time and will even ask for you to lower them more. My business is very competitive and we find that new customers are constantly asking us to match price or offer lower pricing than our competitors. I have seen the change of price becoming the most important concern with the economy. Service and quality, people expect today so it is hard to develop a strategy without looking at price as the main ingredient. Since I have an internet business you are a mouse click away from the next competitor and if they are a half cent less, they will buy it from the competitor. Offering something for free with their order will bring in new customers. Juggling the strategy is very hard without giving away the store.
    http://www.garrettspecialties.com
    Arleen recently posted..Fast Food Chains Take On a Greener Corporate ResponsibilityMy Profile

  7. Teepu says:

    It’s always hard to name your price. I’ve had friends who were to afraid to price themselves a little higher and ended up pricing themselves too cheaply. You know what happened? BURNOUT! He became dissatisfied and ended up quitting the job because he was too afraid too raise his rates because he might lose the client. You always get what you pay for, don’t price yourselves too low, price yourself right, how much do you think yourself would you pay for a service that you offer? Thanks for this awesome post in Bizsugar!

    • Hi Teepu,

      I have seen business owners who were afraid as well which is a shame. I often suggest take out the subjectivity do some research and then when they seen the facts they are not afraid to increasing their prices. Thanks for commenting.

  8. I’ve learned not to set a low price – it doesn’t work well. I set the price that I think the service is worth. Instead, to attract a new customer, I find a good method is to offer a smaller service, something I do well that won’t take me long that the customer will appreciate. Once I build trust, the customer is more likely to ask for the more extended projects.

    An important topic in business!
    Leora Wenger recently posted..New to Social Media? Understand the ChallengesMy Profile

  9. Pricing, no matter what the circumstances is a sensitive subject for most business’s. It can be the very thing that hangs them up from moving froward. I agree that you MUST view your pricing from the customers perspective and in relation to what the market will bare. Keeping it as simple as possible is always the best approach with anything in a business. It is not alway easy for a business person to do though.

  10. Geek Girl says:

    For me my product is selling books. It’s about helping that customer make the decision without having to think much about it. They are more likely to choose a $0.99 book than they are a $2.99 book.
    Geek Girl recently posted..Motivational Monday Quote: 4/29My Profile

    • I have noticed on Amazon Cheryl that there seems many more books priced at $0.99 and you are right you don’t have to think much or at least I don’t when deciding to buy.

  11. Radu says:

    Hello Susan,
    i have my own philosophy when it comes to setting price ranges. Every seller has its buyers.
    Keep it high and you will get few buyers but with a consistent value. Keep it low and you will have plenty of work but the revenue will be slightly motivating.