{"id":217,"date":"2010-10-25T16:47:54","date_gmt":"2010-10-25T15:47:54","guid":{"rendered":"http:\/\/www.forestsoftware.co.uk\/blog\/?p=217"},"modified":"2025-03-10T15:27:05","modified_gmt":"2025-03-10T15:27:05","slug":"pricing-your-products-or-services-too-low","status":"publish","type":"post","link":"https:\/\/www.forestsoftware.co.uk\/blog\/2010\/10\/pricing-your-products-or-services-too-low\/","title":{"rendered":"Pricing Your Products or Services Too Low"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">minutes : <\/span><\/span><p>One of the biggest problems to many small business owners is how to price their products or services.\u00a0 This article aims at listing some of the problems of pricing the service or product too low and presents an alternative<\/p>\n<p>The problems with\u00a0 price reductions<\/p>\n<ul>\n<li>Decrease net profits<\/li>\n<li>Lead to the purchase of lower quality products<\/li>\n<li>Increase customer demands to drop the price even lower<\/li>\n<li>Require even more sales to make up the difference in revenue<\/li>\n<li>Need a larger quantity of products<\/li>\n<\/ul>\n<p>Often,\u00a0prospective customers turn round and say, &#8220;I would buy it if it were in my price range.&#8221; and this tempts many business owners to lower their prices\u00a0&#8211; just to sell more products without any thought about the consequences listed above.<\/p>\n<p>As a business you need to\u00a0find real benefits\u00a0 or value\u00a0that you can use to sell to your customers and prospects. Help them to see how much their life will be better (for example your house will be warmer if you use our &#8220;triple K&#8221; double glazing) or how your can help\u00a0them in their business (we\u00a0can get your site up the search engines\u00a0meaning that you get more visitors and therefore more clients) \u00a0if they use\u00a0your product or service, and you&#8217;ve got a customer. Point out their current problem, tell them how you can solve it, and often the prospect will do anything to get rid of it.<\/p>\n<p>Remember that\u00a0price is not a benefit. Selling is not determined on the cost of your product. If you truly &#8220;sell&#8221; to you your customers and prospects, they will purchase your products\/services no matter what price you determine (think of Rolls Royce and other luxury\u00a0cars for example).<\/p>\n<p>If a customer or prospect doesn&#8217;t buy&#8230;and they claim the cost had something to do with it&#8230;you can guess they probably wouldn&#8217;t have purchased anyway and this is normally because they are either not yet ready to buy or are not looking for the product or service that you are providing.<\/p>\n<p>As a marketer, your job is to sell your products\u00a0or services. The actual <a title=\"The Science of selling\" href=\"http:\/\/www.forestsoftware.co.uk\/blog\/2010\/07\/the-science-of-selling\/\" target=\"_self\">science of selling<\/a> has nothing to do with the price of the product. By the time your contacts find out about the price, they should be determined to purchase no matter what the cost.<\/p>\n<p>So rather than reducing your prices keep them at the same level and alter your marketing after all, if you have\u00a0marketed correctly, you will still have customers\u00a0keen to do business with you.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">minutes : <\/span><\/span>One of the biggest problems to many small business owners is how to price their products or services.\u00a0 This article aims at listing some of the problems of pricing the service or product too low and presents an alternative The problems with\u00a0 price reductions Decrease net profits Lead to the purchase of lower quality products [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,4,10],"tags":[],"class_list":["post-217","post","type-post","status-publish","format-standard","hentry","category-accounting","category-business-advice","category-marketing-2"],"_links":{"self":[{"href":"https:\/\/www.forestsoftware.co.uk\/blog\/wp-json\/wp\/v2\/posts\/217","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.forestsoftware.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.forestsoftware.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.forestsoftware.co.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.forestsoftware.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=217"}],"version-history":[{"count":0,"href":"https:\/\/www.forestsoftware.co.uk\/blog\/wp-json\/wp\/v2\/posts\/217\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.forestsoftware.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.forestsoftware.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.forestsoftware.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}