Business owners are in the business to make a profit. As a business owner you must know how much it costs to produce your product or services. This cost includes your time, administrative costs, utilities, marketing and several other items.
New business owners often forget to add the hidden time zappers into their fee or price structure. They are also often accosted by others who want them to lower their price or fee. Seasoned business owners may forget to add the cost of inflation into their fees or prices.
Now, the consumer is buying your product or service based on how your product or service can solve their pain. You must understand the client or consumers pain point. What pain does your product or service solve?
The secret to getting paid for the value you provide or product value is that you must be able to convey in your marketing message the results he or she can expect when purchasing your product or service. Consumers are not interested in the benefits. They want to know the results i.e. will they have more time, more money, lose weight, less stress etc. You must know the results the consumer can expect to achieve when you using your product or service.
When approached by a prospective client it is ok to ask him or her what is his or her most pressing concern or the one thing that is driving them crazy. Maybe your product or service will prevent the person from facing a fine or penalty. I want you to think about the fee that a heart surgeon charges for a heart transplant. It is a higher fee than what you would pay to have a broken leg reset. The perceived value and the true value is that the heart transplant is saving a life. Whereas resetting a broken leg will ensure the leg heals correctly.
As a business owner you must relay the expected results and the value of your product or service in your marketing message so that your clients and customers understand the value of what you offer. When the client or customer understands the true value of the product or service and not just his or her perceived value of the product or service you will face less resistance and people will not ask you to lower your fees.
Jaynine Howard is a retired United States Marine and former psychotherapist. She is the owner of Dream Catcher Business & Life Coaching. Founded in 2006, Dream Catcher Business & Life Coaching helps business owners, nonprofits, and individuals nationally and internationally turn their dreams into wealth and success. Coach Jaynine and her team of associate coaches will help you jump start your business and life through business, career, and life coaching. Jaynine is a member of the Jacksonville-Onslow Chamber of Commerce, the Carteret Chamber of Commerce, the American Psychological Association, 24/7 Coaching, and Coachville. You can download your free ecourse My 5 Secrets to Networking http://networkingdetox.com/.