Don't Fish in the Toilet

Know Your Worth

 

Is it your company's strategy to obtain clients or customers at all costs? Have you set prices too low based on the value that you, your team, and your company is contributing? There is an unfortunate trend in the small business community to make prices lower than they should be for products and services in an effort to be competitive in the marketplace. An unfortunate consequence of this strategy is that the clients and customers will trend toward the lower-end of the economic scale and generally will put more demand on your business than their financial contribution deserves. 

 

Setting Your Expectations 

The old adage goes, "you get what you pay for," and that cannot be more true in the world of small business. The price at which you set your products and services says something about the value the consumer expects. When we shop at a discount retailer, we expect to pay a lower price and we also expect the quality to be comensurate with that price. When we shop at a high-end retailer, we expect to pay a higher price and we also expect, and demand, the quality be high as well. The same should follow in the world of small business ownership. 

 

Understanding Your Value

Before setting the price of your goods or services, do a market analysis. Answer questions, such as: what is the median income of the potential client base; what is the average home value in the served market place; who is an ideal client for my product and services; and, what is the anticipated value offered by your product or service to potential clients? When these four questions are researched and answered, you now have a basis by which to measure the cost of your goods and services.

 

The Takeaways

Knowing your worth is essential to ensuring the clientel your business attracts is the right fit for your long-term vision. Setting the expectations with your clientele will ensure clear agreement between payment made and services rendered. Understanding your value by doing research of your ideal client within your target marketspace will enable you to set reasonable pricing. The bottom line is: when you're looking for fish, do you want to fish in the toilet or in the deep blue sea? 

 

Craig Reynolds is the Founder and Chief Creative Officer of Cardinal Communications, Chief Creative Officer of the Feel You App, Community Ambassador for W.L.J Angel Gowns and proud parent of Cardinal Communications' Pooch Ambassador to Small Business, Rudy.   Contact Us to learn how we can help your small business or non-profit grow and succeed!

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