Prospects are different. Their attributes seem funny if you don’t understand them well.
A mentor told me how he lost a client in his educational business a few years back.
He owns a home-based education business. Per month, his company charges a minimum of 50,000 naira depending on the client’s need, location and specification. As usual, he calls prospects to know if there would like to come see the office to trust them, or will like to grow through their testimonials online, so they could be convinced of the results they will get soon.
That day, he put a call across to a prospect whose children pay, unknown to him, averagely 500, 000 – 1 million naira per term as tuition fee. She was so excited about his services because she had always wanted the best for her children, so she called for as live meeting with him.
In the meeting, they discussed and when she asked him about the price and he said something around 100,000 naira, she tilted her head to clarify that she heard him correctly.
“How much do your company charge per month?”
This time, he was afraid, thinking the price will be perceived as high. He silently reiterated…
“Oh, really.” She thought.
“I will discuss with my husband and get back to you. Thanks for your time.” She ended the discussion.
He left wondering why his prospect will end the discussion abruptly and promise to call.
“Was the price too high for her” he kept wondering.
After a week, nobody called.
4 weeks not a single call from her.
Then, he started investigating…
It was then he realized that price was too low for her standard. She instantly thought the value will not be enough to meet her children’s need, so she resorted to his competitors.
He learnt a very bitter lesson. Had he researched well into his prospects, he would have known that 250,000 naira will be the average price she would consider as a good deal.
Make no mistake; people perceive value based on the price tag.
How many clients have you lost because you priced your offer too cheap?
Think about it.
Now, I get your point. Saying something is cheap is subjective, right? What looks cheap to one, may be pretty expensive to another. This is why you need to know who you’re serving.
Nevertheless, irrespective of your price – subjectively cheap or subjectively expensive – may it justified. Prospects want to know why you have your price that way.
Is it because you’re offering a better service?
Is it because your products have got proven records?
Is it because it’s black-Friday?
Is it because you’re packing out?
Is it because you’re about selling the business?
Is it because you got the products at a pretty good price?
Always answer the WHY for your prospects.