Here’s an unfortunate reality: many businesses offer amazing value, but struggle to make enough money because they don’t charge enough.
Thinking they are offering customers “a good deal”, their business suffers as a result of selling themselves short.
But whether our country is experiencing economic success or is on the cusp of recession (not going to even try to predict that one), the right people will still pay good money for the service your business provides.
And when you get specific on the precise value customers receive from your business, you’ll be able to charge what it’s worth — and that cost may be (and probably is) higher than you think, or are currently charging.
Let’s look at some ways you can articulate your value and fees so that your business will benefit as a result…
Does Your Cost Structure Match Your Mayfield Heights Company’s Value
“If you don’t value your time, neither will others. Stop giving your away your time and talents. Value what you know and start charging for it.” -Kim Garst
Depending on your business’ industry, it can be extremely hard to break through to customers.
But even when price-shopping, consumers will inevitably look to: what makes you different.
Although Walmart and Target prices may be similar, a consumer may value the customer service at one over the other — that’s called a value proposition.
So what really makes your business different from the rest?
How do you capitalize on those differences?
Do you emphasize those “uniques” when marketing your product?
The better you can articulate what’s different about you, the easier it will be to tell that story with consistency and passion. The consumer will choose you if they value your value proposition over the other guy’s, even if it means paying a little more.
Does Your Story Elicit an Emotional Response?
Do you remember the Dove Beauty Campaign? They created immense value related to their brand (i.e. feelings of self-worth, confidence, increased self-esteem, etc.). Dove, through visual storytelling, got to the core of human response: intense emotion.
You don’t need to sell smell-good soap to do the same. Although other businesses might count on coupons and discounts, your value is in the story you tell. Focus on telling your story well — tell it with authenticity and others will see it and buy into it … literally and figuratively.
How Can Value Redefine Cost Structure?
If you are a service-based business and you aren’t charging a flat fee, I encourage you to make the change. Hear me out:
If you’re unsure of a flat fee method, consider that customers won’t have to worry about additional charges per phone call and meeting. If you provide a few staple flat fee options, they can choose what best fits their budget. This cost structure will aid your financial forecasting for the year to come because of predictability and, therefore, stability.
And this can work even if you AREN’T a service-based business.
Over the past few years, many retailers have transitioned to a subscription model because it offers similar stability (in a retail sense) and limits the guessing game on margin-based revenue.
Flat fees and subscription services are a longer-term play for you and your business. Why? It forms trust and relationships for months (and hopefully years) to come.
When your business can clearly define what sets you apart, you create an emotional response in your prospect. And when you follow that up with consistent pricing, you’ll set yourself up to ask for what your offering is actually worth.
And although that price might be higher than your current fees, people will buy if they believe in you and your “why”.
That’s a fact.
I’m grateful for our chance to serve you and your business — and we are dedicated to its success. Which means we care about the TOP line of your P/Ls, not merely the bottom.
Feel free to share this post with any of your Mayfield Heights business associates or clients you know who could benefit from our assistance. While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for families and business owners.
Jeffrey A Campbell CPA