How to Set Prices

I was on the phone with a client yesterday talking about a proposal she's preparing to submit. She said…"I've never been really comfortable setting prices for my service. I just try to figure out what I think they'll be willing to pay."

Understood…been there.

But BEWARE that whole "figure out what they'll pay" thing is a HUGE trap!

'Cause you will almost always figure too low.

My client was shooting way below market for the value she brings.

The better approach:

Ask…"Why is your product/service important to your prospect?"

Answer…"Because they need their widgets cleaned."

Then ask…"Why are clean widgets important? Couldn't they do it themselves?"

Answer…"They could do it themselves, but they don't want to."

Then again…"Why?"

Rinse and repeat until you get to the bottom of exactly how what you're selling solves a problem or delivers something they want…and why it's important to make the change.

Get there and you'll (almost) always find the true monetary value of your solution. Then, setting prices is easy (and you'll generally make more money).

Ever struggled to set your prices?

Want some help?

marketing consultant steve gordon
marketing consultant steve gordon

Click here for the next step...