A lot of business owners think if they charge less, they will get more clients. This usually doesn't happen. Here are 12 reasons you should actually be charging more for your services.
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12 Reasons Why You Should Be Charging More
A lot of business owners think if they charge less, they're going to get more clients. Today, I'm actually sharing 12 reasons why you shouldn't do this and why you should actually be charging more. I am Tim Fitzpatrick with Rialto Marketing, where we believe marketing shouldn't be difficult. All you need is the right plan. Thank you so much for taking the time to tune in. I'm flying solo today and look forward to giving you as much value as I possibly can in this episode. This information was shared with me quite some time ago and I've always found value in it. So I hope that you find just as much value in it as I have.
I think when most business owners get started, especially in the beginning, we don't have a lot of confidence. We're not charging enough for what we do, myself included. I am not immune to this. But as we start to get more and more experience, we get more confident. We start to feel like, OK, we need to charge more. But not charging enough for the value that we provide is a real problem. It's not serving us as business owners and it's not serving our clients either. So I'm going to give you 12 reasons why you should be charging more.
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12 Reasons Why You Should Be Charging More
So first, reason. Low fees attract low fee clients. OK, if I ever have any hopes of attracting premium clients, I am not going to do it with low fees. You know, people that shop at Neiman Marcus or Nordstrom's do not go to Walmart, OK? They're not attracting those types of people. And that's OK if you want to charge lower prices and that's your market. But the problem with low prices is there's always going to be somebody who's going to beat your price and low fee clients typically, they're shopping on price and price I don't think is the space you want to be in. You do not want to compete on price.
OK, so step number two, reason number two is premium fees attract premium clients. Right. As you raise your prices, you're going to naturally attract those people that expect to pay more. OK, so if you want premium clients, you've got to increase your pricing.
Number three, low fee clients are no easier to get or win than high fee clients. I can tell you this from experience. When I initially started Rialto Marketing, one of the services we offered was mobile applications and we had a mobile app program for schools. It was free. It was paid for by sponsors. We worked so damn hard to sell a product that was free. You would be astonished. It was ridiculous how hard we had to work to sell something that was free. And when we changed those that pricing. It was because we were to justice.
And frankly, if not easier, which leads into reason number four, in fact, high fee clients are often easier to engage when and keep them low fee clients. They expect to pay more. They don't have the time to screw around. They want to solve the problem that they have and they're willing to pay for that. So I think you'll find as you increase your pricing, you're actually not going to waste your time with people that are tired of it. And how many hemming and hawing about whether this is going to be a good fit for them? They're going to make decisions quicker.
Number five, OK, when people pay more, they pay more attention, they're more invested. OK, if I don't have a lot of money invested in it. And if I can't get to it, I don't have anything to lose.
It's not a big deal, but if I pay for it, I'm invested in it and I'm going to pay more attention, which leads to number six. When they pay more attention, they implement more. They take the action that they need to take to get the results.
Which goes to step seven, right, reason number seven, when they implement more, they get better outcomes and results. And when they get better outcomes and results, what do you think that's going to do for your business? You're going to have happier clients. They're going to love what you do. They're going to refer you OK.
Number eight, when they get better outcomes and results, the genuine value of your services rises to meet and oftentimes exceeds the fees that they've invested. So even if you raise your prices and you're not quite sure whether you're worth it. You are naturally going to rise to that occasion, you don't want to let somebody down, you want to make sure that they get more value than they have paid for your service, you will naturally rise to the occasion.
OK, number nine, there's always going to be someone better and there's always going to be someone cheaper. Who cares? OK, don't worry about everyone else. Charge for the value that you know you are worth.
OK, number 10 premium clients are not only able to pay more, not only willing to pay more, they are expecting to pay more. So you don't want to disappoint them. I don't know about you when I get quotes, I typically get three quotes just to see and keep people honest and make sure that I know exactly where they're at and what a fair price is. But I'm going to tell you right now, I rarely go with the lowest price because I'm not quite sure I'm going to get what I expect from the lowest price. Premium clients expect to pay more and they're OK for paying with more because they know that what they're going to get the finished product is exactly what they're going to expect.
Number 11 is your pricing, is your positioning, OK, low fees and gender, low confidence, higher fees and gender higher confidence. OK, I'm going to say that one more time, because it's really important, your pricing is your positioning. People are going to judge you and make judgments about your business based on your price. So the higher fees you charge, the more confidence people are generally going to have in your business and what you do.
OK, number 12, the last one, you need to be reassuringly expensive. This plays right off of reason number 11. OK, if your prices are too low, premium clients are not. They're going to wonder whether you're going to be able to deliver. OK, so you need to be reassuringly expensive, right?
Those are the 12 reasons. Super simple. And this was a short episode. If you need to rewatch it to get all of them over again, please do. But I found these things incredibly helpful in our business as we look at how we're going to price. And I think you'll find the same as well. So I hope you got some value from it. Thank you for tuning in again. I am Tim Fitzpatrick with Rialto Marketing. If you want to gain clarity on where to focus your marketing efforts right now to get the best return, pop on over to our website at rialtomarketing.com. That's R-I-A-L-T-O marketing.com. Click on the get a free consultation button. Guarantee you walk away from that call knowing exactly what next steps you should focus on to get the best return. Till next time, take care.