Pricing and why increasing them is so important!
Posted on 19th Jan 2022
I was reading a Facebook Group post from a fellow accountant. He was dreading this week as in his mind he had some “difficult conversations” around prices and price increases.
In my experience pricing is an area most business owners struggle with, especially around mindset and getting it done. The accountant in this group was given some really good advice on how to frame his thinking and see it from a positive viewpoint.
It got me thinking, I had a quarterly coaching session with a client recently who was in a similar position. They know that they provide a really fab and valuable service to their customers, but for whatever reason dread having a conversation around pricing. Why is this?
Well in truth most people dread putting up their prices as they have a fear that their customers will leave. In reality this is just not true, whilst some will always be price conscious the vast majority of our customers do not buy on price or price alone, if we are honest.
Most of us operate in a sector for our products or services where there is lots of competition so it can’t just be about price…….. you only have to look at the car industry to appreciate that.
It must be one of the most regular conversations I have with clients and I’m usually met with cries of “they will go elsewhere” “I’ll price myself out of the market” “I can’t put my prices up I will lose all my customers”.
In 99% of cases this just isn’t true unless you are in a commoditised industry. They can’t get the exact same product or service from someone else, there will always be differences, whether it’s the customer service, the product itself, the way it’s delivered, the way you make them feel will all add to the overall experience and influence the buying decision. After all, you can’t fail to have heard the saying……”People buy people”.
I have a tool that shows you what happens to your profit if you put your prices up – (Hint it goes up you may lose a few customers but you will still be in a better position in terms of profit and time). If you’d like a copy please email firstname.lastname@example.org and we’ll whizz a copy across.
What I’d like to share is how collectively we helped the fellow accountant at the beginning of this article as I think it may help you when you find yourself about to have “a difficult conversation”.
You see, It’s all about mindset…….how you think about things. Be very wary about the words you use as they control 2 things:
- Your focus
- Your state of mind
So, if you use the word difficult you will focus on everything that is difficult, you will expect it, be waiting for it and get more of it because everything you focus on you get more of!
Also you will definitely not look forward to these “conversations” horrendous!!! So, reframe it to a re-alignment/recalibration conversation for example, or better still a growth conversation – it needs to energise you!
If you think of pricing as a growth conversation because it will enable you to grow your revenue, or it will allow you to grow your customer’s understanding of the value your product or service brings. Or, they will move on which will allow you to grow in other ways, and grow/bring on other customers so which ever way you look at it, it is a growth outcome! How much more exciting is that than a difficult conversation!
So be very mindful of the words you use!!! As that will affect your mood and outcome!!! Remember what you FOCUS on you will get more of.
Have a great day!
If you’d like some support when it comes to pricing call us on 0161 410 0020 or email email@example.com for a free no obligation chat.
Remember “Not all Accountants are the same”.