In our last blog
post titled “How Much Should I Charge,” we discussed pricing and how much you
should charge. If you haven’t read it yet please read the first one so this one
will make more sense to you. But just for a quick recap, check on your
competition and find out how much they are charging or how much the item sold
for last time, look it up online, call as a prospective customer, etc.
In this post we
are going to explore how you go about beating your competition on price without
giving away the store or as some people overuse the phrase “without leaving
money on the table.” By using the method we are going to share in this post,
you will always know where you stand and you will know that you are going to
win each and every time, so let’s dive in.
Once you have
your research done and you know that your competition is selling an item for
say $100.00. You also know that if you sell it for a lot less you won’t make
much profit but you need the business. Here is how to win at this pricing game
and once you have gotten through the tough part the rest is all money in the
bank.
For the sake of
our hypothetical $100.00 example we are assuming that you can do this (if the
numbers don’t work for you, just adjust them to fit into whatever price range
you are in whether it is very small numbers or very large, this works in all
categories).
Go in on your
next bid at $90.00 to win the business. The reason that you want to do this is
because if you believe that your product or service is better than your
competition, you will have to at least get in to prove that you are better. If
you believe you are better but never get a chance to prove it you will never
survive long enough to build your business.
Now that you
have won the bid at $90.00, wow the customer with over the top service,
products, follow-up service, communications, etc. Now they are really happy
with the choice they made and they will give you their next opportunity to bid.
This time, go in at 91% and of course, make sure that you keep up on all of the
reasons that you won their business in the first place; great service, over the
top love for your customers, etc.
The next
opportunity you get, go in at 92% and keep going like this. At some point you
are going to hear a complaint about the price, maybe when you are bidding at
$100.00 or maybe at $105.00 or whatever it happens to be. This is extremely
important – so pay attention! The customer has complained, you offer to get it
fixed and lower the price to say $102.00 and they are now happy again. You just
found their pain point and the price that you will go in on every bid (of
course if it is the same product and quantity, etc.). Make sure you never lower
your customer service, love for your customers, etc.
Now whoever is
doing your pricing, begin to build a “cheat sheet” of sorts. You want to keep a
log of all of your customers and what your prices and margins are so that you
can always be consistent. Once you have done this you will always be able to
look at your sheet and see what you need to price your product or service at
for each customer in order to always win. By doing this you have won the
customer with your pricing and your service and you have locked out your
competition.
In our next blog
post we will discuss locking out your competition so that you can dominate your
marketplace.
If you would like help with this or any other
business, sales, marketing, social media issues and more, contact us at:
- info@empowermediallc.net
- www.facebook.com/EmpowerMediaLLC
- https://twitter.com/empowermediabiz
- www.youtube.com/EmpowerMediaLLC
If you know someone that is thinking
of starting a business but aren’t sure what business to start or what to do, we
have the most awesome FREE help available. Have them go to www.getaninstantraise.com and
download the FREE eBook that is available and they will be on the right road,
the right way and can get started now for FREE!
Until our next post – we wish you all success!
