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Be Confident in Your Prices

Have you ever asked, “How much?” and you could tell the person selling you believed the price was too high? They usually start with something like, “Before I tell you the price, let me tell you all you get.” They might as well say, “I’m afraid to tell you how much because you’ll just think it is too much and walk out on me.” When they start out justifying the price, they have no confidence in their pricing at all.

This is especially common when selling high-ticket items. You know it is expensive so you feel a need to justify before you say how much. The problem is that the more you try to justify, the more over-priced the item is perceived.

There is a better way…

HAVE FAITH IN YOUR PRICES

First, you need to have faith in your prices. Most people, especially if they are selling themselves, such as artists and presenters, tend to undervalue themselves and their products or services. Maybe it is because you wouldn’t personally pay that much for the item or service being sold. Maybe it is because you are afraid of rejection and being told No. Maybe it is because you see the value but you can’t afford it yourself because of your own financial hardships.

You have to get over whatever is holding you back. You have to understand that you are offering a fair price for the item or service. You have to accept that you have to charge a certain amount if you want to pay your bills and stay in business. You have to tell yourself that your items and services are worth more than you think.

THERE ARE CUSTOMERS OUT THERE

Second, understand there is a market for your products or services at that price. Not everyone buys solely on price alone. In fact, in your industry, as in any industry, about half the shoppers make their decision based on price, and half don’t. That second half looks at factors like Trust and Expertise and Convenience. If you’re not confident in your pricing, you’re losing the trust and expertise crowd, too.

If your price is higher than others in your category, hopefully it is because you baked your expertise and some customer conveniences into the price (hence the justification you tried to make before stating your price). At the end of the day, you really are offering a fair value. You just need to learn the proper way to state that value.

PRICE FIRST

Learn to state your prices first. When someone asks, “How much?” the next word out of your mouth better be a number. Take a deep breath, say the price, and then tell them all you will do for that price.

How much? Five-hundred-and-ninety-nine-dollars-and-for-that-you-get-our-white-glove-treatment-which-includes…

Say it with confidence and pride. You might not win the price-only folks, but you’ll actually build trust and show off your expertise while telling your customer about how you’ll make it convenient for them. (Make it convenient enough and you’ll win some of those price-only customers, too!)

Change the way you answer the How much? question and you’ll close a whole lot more sales.

-Phil Wrzesinski
www.PhilsForum.com

PS Pricing and negotiation are tricky. We are all driven by fear. The fear of rejection, the fear of losing the sale, the fear of making a bad impression, all drive away our confidence. You are worth more than you think. Your prices are fair. Heck, if you’re the typical indie retailer, you’re offering up a whole lot of expertise and convenience for your prices making them more than fair. You won’t win them all, but if you show more confidence in your prices, you’ll win more often, and that’s all it takes to grow.

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