There is an enormous amount of myth and mistaken thinking in the professional services arena around pricing and fee structures.
Myth: It’s a price sensitive market
Reality: It is a value sensitive market
Myth: Start cheap to enter the market and capture your share
Reality: You have now set the benchmark low, and customers will always want you to be that cheap
Myth: The competition will charge less than me, and I will lose the business
Reality: Someone will always be able to charge less than you, and if all you do is allow yourself and your clients to focus on price – then you will have no business
Stand out from the crowd. Forget about what everyone else is charging and deliver a service to your customers based on reaching their objectives successfully, and attributing both the tangible and intangible values you have brought to the client.
Focus on making the client significantly better because they have you. Bentley, Cartier, Ferrari and other quality brands do not lower prices when times are hard or the economy hiccups. They position themselves in the market to those who appreciate good value. Position yourself and market to quality prospects who will treat you like a peer and respect you for the good work you bring to the table. Then appropriately charge so that you get paid well, and the client receives great value.
Learn more about pricing strategies by reading my book: Marketing Wisdom. Available in all good bookstores such as: Amazon, QBD Bookstores, Dymocks Bookstores, Angus & Robertson Bookstores, Barnes & Noble Bookstores, or direct from Wiley Publishing or here in our online store.