Even the best laid plans might not exactly work out the way you want them to. Sometimes, despite all the ground work you’ve planned out, you might still face clients with price anxiety. This is used to describe a client who is facing many uncertainties with the pricing and is undecided on whether to proceed with retaining your services. In this instance, there are a few strategies you can utilise to help your client overcome this anxiety and convert his uncertainty into a yes to your service. One way of doing this is by providing a guarantee to your client. You might remember that an earlier example involved a lawyer only charging fees if he is able to win the case. This strategy takes the risk out of the hands of the client and pushes it back to you. By utilising the same principle, you can use the same strategy when you are selling your service to your client. You can very well include a clause in your contract that states your client will only be charged that certain amount if you are able to provide a service that would be able to generate cost savings. Thus, your client would be more apt to feel there is nothing to lose and go ahead with your service anyway because he would not have to pay you if you are unable to deliver what you have promised. Of course, you – in being confident in your own abilities – would be able to deliver and receive your payment in the end.
Of course, there will come a time when you would need to increase the price of your service. If you have never conducted this exercise before, it might be slightly off putting because you would not know how much is enough in terms of the increase in value of your service. The only way to go through this obstacle is by simple experimentation. You can inform your existing clients of an increase in pricing and look at the number of clients who are still eager to retain your services. Chances are you would have quite a number who are satisfied enough by your service so far to be more than happy to go along with you even with the price increase. There would of course be others who are unable to keep up and then decide not to continue retaining your service. Most people would not want to lose clients and so continue undercharging their clients. If you put things into perspective, however, you will note that by increasing your prices and losing a few clients, you are still a winner because the increase in price would be able to offset any significant losses. Additionally, you now have more time to focus on business operations because you have slightly less clients!
Value, Value, Value
At the end of the day, it all boils down to one thing: value. Once you are able to quantify the value you bring to the service, you would then be able to transfer this value on to your clients. Once you are able to explain the significance of this value to your clients, you would then be able to enjoy the benefit of having clients who are more than happy to pay you for your ability to bring value to them. It really is as easy as that. Of course, there are many things that might still be down to trial-and-error. However, laying the foundation of understanding the value of your service will go a long way towards helping you fine tune your pricing strategy. Just remember that you can’t cut corners when it comes to the value of your service. Clients essentially want to feel that they are getting the best with the money they are paying you. Your job is to ensure that they continually feel that way.