People build an image of you based on the price you offer.
Your pricing reflects how you think about your audience. It can draw the attention of a group of people, and it can push others away.
But your pricing also reflects how you think about yourself and what you have to offer.
What signals are your prices sending if you’re cheaper than others?
What signals are you sending when your prices are higher?
Think about street food and food at a fine diner. Why would fine diners sell for a much higher price? the food itself may taste yummy at both, if not tastier at the food cart ; )
Why would people commit to high-priced online courses and drop out of most free or low-priced ones?
What is the difference between a shop that sells you furniture for a little less than their competition and an interior designer who'd cost you a fortune?
When you decide on pricing, you need to think much broader than your cost. Where would you set your price if you based it on the likely value your clients get from your service?
Think of it this way: I need to unlock a door behind which is something I really hope to reach. You have the key to that door. How much would you charge me? Is it about how much it cost you to make the key? Or is it about what’s on the other side of the door?
You can use pricing to send messages to your audience. Messages about who you want (and don’t want) to serve. Messages about the value you promise to deliver.
A cornerstone here is: would your customer feel good about themselves should they pay extra for work that looks and feels the same as the cheaper alternatives? Most people would feel stupid if they paid extra for a commodity product. To get this right, you must anchor back to the psychographics of your “Who” so you can figure out what “better” is for them.
Remember: We are not merely selling goods and services. We are selling the emotions that come with our goods and services: hope, security, status, pride, … and we can poke these emotions to meet their perception of what they need. We can do that by all the stories we tell .. all the clues and signals and semiotics that feel right for our people.
Figure out how to deliver on that .. how to make things better for your prospective customers, and don’t feel obliged to lower your prices against the competition. Instead, feel obliged to make things better for your customers and use price as a signal.
