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Price is too high how many times have you heard that or how many times times have you thought to yourself. Thats what someones going to say to if i even think about starting a business or charging. What.
I really want to charge or charging what. I think im worth . Its a very common and probably i would say the most common response that you get from somebody who feels like theyre not ready to invest in what youre offering regardless of what that is so i talk about this a lot i teach this inside of my program.
The authority accelerator. All the time and i wanted to do a really deep dive training on this for you because there really are only three responses. Ive found in speaking to thousands of people over the last couple of years in building.
My business to this question. They may surprise you so were going to get to those in just a second. But first if youre excited about this video hit that like button be sure to subscribe hit the bell to be notified every single time.
We post a new video. If you know somebody who could benefit from watching this which i think theres a lot of people who could because this is such a struggle. I struggled with this when i started my business in such a big way and im so excited to give you this information because i think its going to be really helpful for you in making more money bringing in more amazing clients.
Because thats what you deserve and should have and overall just creating more peace of mind inb your business. All right so lets dive in so the. First thing you want to talk about is lets just do like a little pros and cons list because i love one of those but sacrificing on your price versus charging what youre worth so sacrificing on your price so lets say someone says to you your prices are too high.
And youre like oh okay well im going to discount. It then and ill give it to you for 50 off or whatever it may be the issue of doing that in a reactive way is that you allow the client to break your boundaries immediately so what do you think theyre going to do when they actually start working with you theyre going to become those clients that are the largest pain in your ass you have ever met theyre going to be the people who ask for all the extras. Ask for all your time message you when they shouldnt be messaging.
You and just break every single one of your boundaries. Again. I say this with love and from so much experience.
So the moment you let somebody break your boundaries right off the bat. Theyre going to think that they can continue to do that moving forward so sacrificing on your price breaks boundaries the other thing that it does is it devalues your worth and outcome. If you guys can read this bless i have the worst writing in the world.
But hopefully you can read that and it makes sense. But thats another thing is that the moment you discount your price again just to get somebody in the door it means that you dont truly value what you do and you dont see the value in what you do and youre not confident therefore. They can smell that its not saying that the potential clients bad.
But i mean we all want a deal we all would like to pay less for what were getting. But what it does is it says right off the bat. Oh i can of take advantage of the situation.
And i can take advantage of this person again moving forward heres the thing. If you watched last weeks video right here on how i started my business. Very lean and for under 100 a big part of why i did that was because i wanted to make sure that i was never in a vulnerable state and not having money in the bank.
And having so much debt puts you in a very vulnerable state. Now everybodys been there ive been there. But it makes you more reactive.
When youre trying to get people in the door. When youre trying to create revenue. When youre trying to close deals because youre like i just need the money so you feel very sort of panicked and youre just going to take what you can get taking what you can get means youre going to get bad clients can i get an amen in the comments.
If youve ever been there so those are just a few of the reasons that sacrificing on your price is detrimental to your business. You might think in the immediate terms that its going to bring in more people and youre going to get an influx of clients. But the thing is you might get that but youre going to get more headache later so charging what youre worth first and foremost.
It combats all of these but secondly it makes you premium choice. It makes you this aspirational choice that people want to work with so theyre not just working with any jack or jill off the street. They want to work with you because you know your worth.
And you are the premium option. People will save up just to work with you when youre the premium you become desirable. Its kind of like dating.
I pretty much compare everything in business to dating. But its kind of like dating. The more readily available.
Somebody is the more clingy somebody is generally the less desirable they are to us so its the very same thing in business. Youve got to stand your ground. And know that you are worth what youre charging and were going to talk about how to price what youre charging and your products and everything in a second.
But when you understand that and you charge what youre worth and you have a premium price. It gives you the option of being the premium choice that people really really want to work with and you become more and more desirable. It also makes you more profitable which again combats.
The fact that you are not going to be reacting to clients and just saying yes to clients. Because you need the money that is the worst and most vulnerable place to be as a business owner. If youre charging what youre actually worth youre charging a premium.
You are the premium choice youre creating more profit in your business. Therefore you have the safety net and you have what i like to call runway. Which im going to dive into deep in my next video.
Which is going to be all about the simple steps to financial freedom. But runway basically means that you have money in the bank for at least a few months. So if god forbid something happens to your business or to you and things stop running you can still sustain your lifestyle and your business.
Because you have that runway or that money in the bank. So makes you more profitable. So youre less reactive to taking on bad clients.
So really important to understand those pieces of why sacrificing on price. And charging your worth are very different. Things.
If youre just reacting to clients and youre just trying to get people in the door. Its going to create all of this now. I made a few other notes so i want to make sure that im hitting everything that i want to but the piece that i wanted to add into this is that this is the long game.
This is the short game so you might get an influx of clients by sacrificing on your price. But like i said in the long term its going to create more headaches for you this is the long game. Because youre going to create a business full of clients you love and youre obsessed with as opposed to having a business full of clients that give you a heart attack because they stress you out so much so again long game versus short game.
If you want to be around for a long time and have a business that you like and doesnt make you miserable. This is why charging what youre worth is really really important now the only reason that you shouldnt be charging. What youre worth is if your product sucks.
If your product doesnt do what you say it does if your program doesnt do what you say it does if your service doesnt do what you say it does and doesnt deliver the outcome. Then you shouldnt be charging anything at all thats also a short game to play so. If you just make something to make money and youre not thinking about how its going to affect your clients.
Then you shouldnt be charging anything at all and you are sacrificing your integrity as a business owner by doing that so whatever youre making. It should be the best in the business. If its the best in the business.
You have no problem charging your worth and being the premium choice. Okay okay the final thing i want to say on this before we dive into pricing and how to price is that when people know that theyre working with the best. And when they actually have skin in the game meaning that they have invested money into you and its a decent amount of money for them they are going to be so much more committed to getting to the outcome that your service product etc.
Provides. Which is a win win for both scenarios. The client is going to get what they want so theyre going to see success and theyre going to get the outcome that youre telling them they will youre going to get an amazing testimonial and amazing social proof that you therefore can use to continue to scale your business and share the results with other people to say.
Yes. I am. The best.
Which is going to attract even more amazing clients to you so thats a big part of this is charging. What youre worth makes people. Committed.
If someones buying a 19 e book. Do you think theyre actually really committed to the outcome of that e book or do you think its more of a mass play versus i.m actually going to change your life with this okay.
If you have a 19 e book. Dont get mad at me but. Im just saying and ive charged all levels.
I know that the clients who actually have skin in the game get way better results because theyre serious and they take it seriously and theyre focused so those are all the big things. There that i wanted to go over okay so. Lqets move on to the next part of this which is i promise.
Im going to get to this question your price is too high how do you respond. Were going to answer that a little bit later. But before we do i wanted to explain to you how i price and how we show our clients how to price now.
If you are interested in working with me i put a link below where you can actually apply if youre a coach or consultant. Or an expert and want to have an online business. Theres a link to apply for our authority accelerator program below so its an application only program.
But wanted to just tell you that so there it is so the value based pricing system is what we use inside of the authority accelerator. Its what we teach our clients to do and its a really effective way of pricing your products and your services. Because it no longer positions you as trading time for dollars.
And it no longer positions you as charging hourly. Because that doesnt really serve any benefit. And again doesnt create the level of commitment that people need in order to really create transformation.
Now do you want to charge. Something astronomical just for the sake of it absolutely not again. Ive charged all levels.
So i know what im talking about here. What i know to be true is that value based pricing is the best model to actually land on how to price your program and services. So what is it let me tell you so value based pricing looks like this cost plus income minus barrier equals value based price.
What the heck does that mean so why this is so powerful is that youre looking at the cost to your client. So you actually do the research you speak to a lot of people who are in your ideal client realm and you get to know what its costing them to not get the outcome that youre going to provide through your paid program service offer that is mentally financially and emotionally. Then you have your income.
So thats you as the business owner realistically to keep your business afloat to pay your bills every month. What is your income goal lets just say its 10k a month and you then would set your. Goal if you have lets.
Say a 2000. Program or offering or something like that then you would need to sell five of those that seems pretty manageable and doable especially. When youre creating an outcome that transforms peoples lives or businesses.
Which is what a good program or offer does it actually creates a transformation because at the end of the day people arent paying for time. We all dont have enough time. Thats one of the biggest complaints youll ever experience with anybody in your life.
Is that i never have enough time theres not enough time in the day. I wish i had more than 24 hours. So creating this really long program and thinking you can charge more because of it isnt actually the case.
Its the outcome and the transformation you create that creates the value of it so people arent paying for time people are paying for results and paying for transformations. So what are your income goals. Whats the cost of the client financially emotionally and mentally.
Then whats the barrier to entry. So this is doing research in your market to see whats everyone else charging and making sure that you understand what people are already paying for this solution. Then you can kind of cross reference.
That with what youre going to be charging so cost plus income minus barrier to entry equals the value based price so before i dive into the responses to your price is too high. I wanted to give you an example of this so lets just say that i actually have a client who does this and i love her she helps women heal their acne using natural methods and her results are insane. She is amazing.
She was telling me the other day that there were some moms. Talking with one of her friends across the country. And they were saying.
Oh. My gosh. Theres this celebrity skin specialist that ive been following on youtube that was her so she started to really build a name for herself and we have talked a lot about pricing.
So the cost for her clients is actually very high and when shes been speaking to clients. Theyre saying things like ive missed a week of work because im so embarrassed about my acne. Im paying for therapy.
Because of the mental toll that its taking on me. Im going for a facial every two weeks those things add up that at least is almost. 1000 a month now her program does not cost 1000.
Its actually slightly less so the value of her program is super high. When you consider the cost that our clients are experiencing by not having the solution. Her program actually works.
So the value of a program is so high to her clients and her income goals. Shes able to hit them because shes hit a price point that allows her to not sell to many people. But have a good amount of clients that are manageable.
That are paying her a decent amount to get this amazing cost to them solved so no more therapy. No more missing a week of work no more x y and z. The mental financial emotional toll that its taken so you could be selling business services.
You could be selling health and wellness. You could be selling personal training whatever. It is but there is a cost and thats why people want to buy a solution.
So youve got to figure out what that cost is and then base your price off of that and your income goals and research. What the barrier to entry is right now meaning what is the average cost in the marketplace for the solution that youre providing and what should yours be based around that and the other two factors. So thats value based pricing.
All right moving on to what you came here for which is your price is too high. I think you need to understand all of that before i get into the answer to this question and the three responses to this question the only three responses that i think you really need so lets dive into those now recap compare and fit. So what do i mean by that recap means okay.
Lets go over what this is currently costing you and this is something that you would talk to the potential client about and say okay with where youre at currently tell me whats going on with your situation. What is this currently costing you on a mental level on an emotional level on a financial. Level so with the.
Example i gave earlier its close to 1000. A month. So recap that cost and make it really clear that thats the current cost you want to repeat it back to the person because a lot of the objections around your price is too high comes from a place of scarcity and it comes from a place of nothing else has worked so why would this work for me.
I dont want to pay you because nothings worked so its this internal monologue. Thats happening for the person. Who is objecting because theyve lost all hope and they really dont think that anything else is going to work.
Which is totally fair once you get to that point. But you need to help this person through to make the decision because you know what you have to offer is actually going to work for them do you want to recap. Okay so currently this is costing you lets say.
1000 a month its costing you 1000. A month then the next thing you say is and when you say my price is too high. What are you comparing that to then you want to kind of reiterate again are you comparing that to the therapy sessions that youre currently doing once a week that you dont feel like are progressing you are you comparing that to the facials that youre spending a couple hundred dollars on every two weeks that arent helping with your acne problem are you comparing that to maybe another program that you took that im unaware of it kind of adds.
A level of clarity of what am i comparing this price to why am. I saying. This is too high is it because im comparing it to those things that have not worked for me.
So of course a dollar would be too high because nothing has worked so you then compare it and stop talking let the person kind of let that sink in because they really have to think about what are they comparing it to then the final thing is if they still wont budge on it this is the final thing that i say its something along the lines of listen. I dont want to take your money. If you dont think this is going to work.
And if youre not committed to the process of making it work because this is not a magic pill. Its not going to work overnight thats never what im going to guarantee and i only want clients who are committed so i understand that you are committed and you really want this problem to be solved. Im prepared to help you with that and i know i can.
But i dont want to work with you if youre not committed to that outcome as well. I dont think its beneficial to either side. Then just stop talking and let them do it let them go with it and let it marinate because a lot of the time people will say no i am committed and i want to do this im just scared.
Then you can kind of talk through that. But thats the process of getting people to the place where they realize oh no its not too high. Its just too high to compare to the things that ive done before that havent worked thats why ive come to you and you are going to actually help me with this so i am willing to pay you so thats my whole process of how to do this.
If you liked this video hit the like button below be sure to subscribe hit the bell notification to get notified every single time. I post a video share this with someone who needs to see it because i think itll help a lot of people like i said. If you want to apply to be part of our authority accelerator program.
You can click the link below this video. It is for coaches consultants and experts who want to elevate their income impact and authority online in an evergreen way using my help and working with my team so application only application is below. If you want more info on all of this stuff check out this video on how i started my business for less than 100.
And this video on the one thing that i needed to know in order to become a millionaire thanks for watching ill see you in the next one bye. .
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