Are you being paid too lowly? How about having your customers paying you more? While many small businesses are competing on price, you may want to go the other way – increase your price.
Most small businesses are competing on price mainly because they are selling the same things. There is no innovation, little value created. Therefore the only way for them to survive is to sell at lower price to attract the customers.
Engaging in a price war is tedious and a waste of effort. You are doing more work but earn little profit. I would discourage any business that would like to grow to engage in a price war.
Now the point is, if you do not lower your price, how do you create more customers.
Be innovative, create more values and increase your price. Take for example Nike. There are many sports brand in the world, yet Nike’s shoe is selling at a high price. The reason is they are always in the forefront, innovating new design and technology for their shoes.
What do I mean by creating more values? You got to think of ways to further enhance your customers buying experience. Or give them more than what they expected.
For example our Youth Entrepreneurship Workshop, we charge a high price. In fact we keep increasing the price compared to when we first started. But we add tremendous values to our students.
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We had three follow up sessions throughout the year for those who have completed our course. We conduct workshop in a smaller scale to continue guide and inspire them in their journey.
We send out monthly email to them to motivate them. Each of them get a 60 pages workbook on information about starting a business, building a business, sales & marketing and leadership.
In another business – the learning center, we add value by giving information to the parents on how to create bonding with their children. We send new articles to parents monthly. We also provide free study skill workshop to our own students. Of course, we charge a price that’s higher than most centers.
You can create enormous values for your clients. This is a win-win situation. Your clients will have a great experience doing business with you. They get more than they expected from you.
And you earn more money by adding values for your clients. You do not need to engage in those tedious price war. Your clients come back to you next time because of the good experience. Isn’t it a win-win deal?