Mistake 16 — You assumed people buy on price alone

It’s not about the price.

This is one of the biggest mistakes made by small business owners. When I say big mistake I mean huge, enormous, gigantic! If there is only one thing I could give you to take away from this course it would be this — People do not buy based on price alone.

Assuming people buy based on price alone is just not valid. It actually couldn’t be further from the truth.

Most of the time when I hear business owners concerned about their pricing or referring to competitors pricing it’s rooted in fear or lack of belief. If you don’t believe your solution is worth what you’re charging, why should your customer?

They don’t have you!

What your competitors are charging has nothing to do with you. Your business has something they don’t — you! So it doesn’t matter if they charge less. You can give your customers something your competitors can’t!

Have you ever gone to Gold Class at the movies? Ever stayed in a 5 star hotel? Ever traveled overseas for a holiday when you could’ve gone somewhere much less expensive? Have you ever used a service from a business or person you trusted and enjoyed working with, even though they charged a little more than others? I guarantee when you go to the supermarket, there are some items you buy which are more expensive than other brands.

You don’t buy based on price alone and neither do other people. I would estimate, most of the time you aren’t paying the cheapest possible price. Sometimes you’ll intentionally pay much more than you need.

So why are you happy to pay more than you need? For the luxury experience? Better quality? Superior taste? Loyalty to your favourite brand? Unique opportunity? Status? Convenience? Ok, now we’re onto something. It’s not about the price.

It’s about what you get for the price.

For over 11 years I sold personal training memberships at over $200 per month. My business was located in one of the lower socio-economic areas of Melbourne, yet my business turned over an average of six figures for eleven years.

What my clients received from me was incredibly valuable to them. I helped solve their needs. I changed their lives. I helped them achieve things they had never dreamed of. I helped them reverse diseases. I helped them get off medication. I helped them feel better about themselves. I gave them more energy to spend with their kids. I believed what I was offering was worth 10 times what I was charging.

It’s not about the price it’s about the value you’re offering. We’re going to be covering value in detail tomorrow so make sure you check back in.

Today’s challenge is to think about all the times you spent more on something than you needed to. Pinpoint one example. Think about why you were happy paying the higher price.

Think about your business. Do you believe what you offer is worth more than you charge? What do you offer by way of a solution? Can you be specific about the the benefits you can give your customers? Can you show them a reason why it’s worth doing business with you, instead of your competitor?

The second challenge task for today is to watch this video – Start With Why

“The goal is not to do business with everybody who needs what you have. The goal is to do business with people who believe what you believe” — Simon Sinek

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