Sticker shock is a powerful thing.
How many times have you heard your customers say something like:
As a customer, I get it. But as a business owner? That’s a harder proposition.
Usually, your customers’ hurdles will be either time or money (or even both, since they’re two sides of the same coin). But today, we’re going to talk specifically about the money objection.
Are you scared to talk about money with your customers? I’ll be honest: I am too! It’s almost always awkward to talk about money, but as a business owner in this industry, you need to know how to finesse these types of situations. The more confident you are at this stage, the more your clients will see the value you can offer them.
When customers first say they can’t afford your services, most business owners’ reaction is to lower their prices. But I’ll tell you now: no matter how much you lower your offer, there will ALWAYS be people that think it’s too expensive. And the opposite is true too: no matter how much you raise your price, you will always find a fervent client base!
Resist the urge to lower your prices.
Think of art connoisseurs. Personally, I don’t get it; I usually think the art is pretty but some of the price tags on these pieces blow me away. But my friends still readily collect these pieces without any hesitation. Why? Because it’s valuable to THEM.
(For me, I tend to spend my fun money on sneakers. I can never have too many sneakers!)
The lesson here? You are somebody’s high-class art (or limited edition sneakers).
Since we are a service-based industry, it’s tempting to fall into pricing yourself based on the time you spend with your customer. However, I can work on somebody for 20 minutes and pinpoint their problem right away, which is why I may charge as much (or more) than someone who would take multiple sessions.
Your customers come to you because you have the experience to back up your pricing. You have solutions to their struggles, so don’t undersell yourself! Pricing yourself too low can ultimately backfire on you. (Ever wondered why something at the grocery store was marked 90% off? You probably had some hesitation before picking up that yogurt. The same principle applies here!)
Your pricing should reflect the value you provide to give them what they want. They don’t really want the classes, per se. They want to run the marathon next year, or to drop 10 pounds, or to fit into their pre-COVID jeans, or to dance at their child’s wedding without their knees aching. THAT is what you are selling!
Next, get to the root of your customer’s objection. It’s likely not the numbers!
For example: Is the $500 package more daunting because they don’t want to be locked into a membership? If they seem hesitant to pull the trigger, help simplify the costs with a quick breakdown. That $500 package is likely cheaper than the classes altogether, comes with amenities to support your customer through the entire journey and will likely prompt your customer to come inconsistently.
What do they ultimately want by purchasing your package? Likely, it’s not to save the most money. It’s to reclaim that feeling of feeling good in their clothing, or building stamina to keep up with their little ones, or to relieve that back pain that has come into their lives recently. Frame your services as the solution (because they are!).
Remember: simplify before you amplify. Your niche really transforms your audience! I coach female business owners in health and wellness. I don’t coach females in every industry, and sorry fellas, but you’re not in my sphere. I chose my audience because I know where our pain points are.
Maybe you work with women going through menopause. Maybe you work with bodybuilders, or aging individuals who want to stay active, or retired military.
A jack (or jill) of all trades is a master of none. Your customers will pay for expert advice, and by honing in on your niche, you are not only the expert, but you are more likely one of the MAIN experts in your field. Smaller niches have less competition.
You want to get clear in your messaging with your customer, and that starts by getting to know them--intimately! I personally love surveys, one-on-one talks, and even focus groups. These give me the chance to ask my customers directly about their common pain points and their goals.
For example, our unique proposition in Pilates In The Grove is that we are also physical therapists, so we can assist those who deal with chronic pain. Our customers may be putting off the gym or afraid to deal with dismissive trainers. We offer a safe and welcoming place where they can rediscover their love of movement again, judgment-free.
At the end of the day, convey your worth; you have nothing to be shy about! People will pay to get results. But you have to know what those desired results are, so you can convey to them why YOU are the one who will get them there! If you want to learn more about pricing and overcoming objections, join us for our upcoming masterclass, Pricing, Profits & Processes.
We’ll dig into knowing what you can charge to make your clients happy and while still supporting your business and its bottom line.