Question # 22: Let's Talk Prices
One of the fastest, most overlooked ways to break through a money plateau, is to adjust your pricing. It may sound obvious; but for many, it's not. Also, it can be scary.
Yet, please let me say too: this isn't a declaration to increase pricing and take advantage of people. Instead, I ask: does your price match what you sell and who you're trying to reach?
If your pricing isn’t the right representation of your core offering, what you love to do, and your ideal clients, it will disincentivize dream clients from buying from you. Counterintuitive as it sounds, if you’re too inexpensive, people won’t trust the quality. Also, small businesses usually have too many offerings. "We can do anything! It's all custom!" is something I hear a lot. But this is a mistake and will hurt your $ and time.
With the clients we work with, changing their pricing model & eliminating products or services gives them an average 50% income increase in year 1. (I know that it sounds crazy, but I promise it's true).
Here’s a quick test: what's your conversion ratio? In other words, if you offer a custom product or service, are you winning 25-30% of the proposals or quotes you offer? And if your business sells non-custom products, what's your buy-to-cart ratio?
Your conversion ratio is a good metric that is tied pricing. If the conversion ratio is low, something is wrong ... and it could be pricing.