Earlier this week, I was talking to a fellow business owner who’s been running his shop for years...
Despite his hard work and dedication, he was frustrated.
No matter how much effort he put in, he couldn’t seem to justify raising his prices...
He was worried that customers would walk away.
It’s a common struggle—how do you convince people to pay more when they’ve been used to paying less?
As we dug deeper into the conversation, it became clear...
It’s not just about the price itself...
It’s about how the value is perceived.
Many small business owners feel the pinch when it comes to pricing their products or services.
It’s tough when you know your work is worth more, but the market doesn’t seem to agree.
But here’s the good news...
The key isn’t just in raising prices—it’s in creating and communicating value in a way that resonates with your customers.
Often, it’s not just about the product or service itself...
It’s about how you position it.
How do you make your customers see that what you’re offering is worth more?
The answer lies in how you present the value.
Here are 14 ways to establish and communicate higher value for your products or services:
- Price Strategically: People often associate higher prices with higher value. Don’t be afraid to adjust your pricing to reflect the quality you offer.
- Create Scarcity: Limit availability—whether it’s a limited-time offer or a limited number of slots. Scarcity creates urgency and increases perceived value.
- Sell Systems, Not Just Products: Customers will pay more for a comprehensive solution rather than a standalone product. For example, package your products as part of an overall strategy that solves a broader problem.
- Highlight Immediate Benefits: Clearly articulate the immediate benefits your customers will receive. Whether it’s saving time, improving quality, or increasing revenue, make these benefits front and center.
- Leverage Social Proof: Share testimonials, case studies, and success stories. When potential customers see others benefiting from your offerings, they’re more likely to see the value.
- Add Substance: Whether it’s more product, more content, or more personalized service, adding substance to your offer can make it feel more valuable.
- Tell the Story: People love stories. Share the story behind your business, your product, or even a specific service. A compelling narrative can significantly increase perceived value.
- Focus on the Experience: Think about how you can improve the overall experience for your customers. A smooth, enjoyable buying process is often worth a higher price.
- Emphasize Immediacy: Highlight how quickly your customers will start seeing results. The quicker they can benefit, the more they’ll value your product or service.
- Keep It Simple: Sometimes, less is more. Simplify your offerings and your messaging to make your value proposition clear and easy to understand.
- Consider the Length: Whether it’s the length of your content, your contract, or your support—sometimes, a little more time or detail can add perceived value.
- Embrace Technology: Stay updated with the latest tools and technologies that can enhance your offerings. Customers often equate the use of modern technology with higher value.
- Tap Into Nostalgia: Depending on your market, tapping into nostalgia or classic methods can add value, especially if you’re restoring something familiar in a new way.
- Establish Authority: Position yourself as an expert in your field. This can be through content, certifications, or simply by demonstrating deep knowledge and experience in your area.
So, if you’re finding it hard to justify higher prices...
Take a step back and consider how you’re presenting the value of what you offer.
Start incorporating some of these strategies...
You might find that customers are not only willing to pay more—they’ll feel like they’re getting a great deal.
Jay (raise your prices) Simon
P.S. If you have another business owner friend that you think could benefit from the great insights shared in The InboxCMO don't forget to share this with them.
