How To Attract Higher Paying Customers So You Can Work Less And Earn More
Do you know which of your clients generate the greatest amount of profit?
If you don’t, it’s really important you get clear because metrics like these can help focus your work and efforts in the right direction.
That’s because if you want to work less and earn more you have to give some consideration to the sort of clients you work with.
What’s more, it’s really important you think really closely about what you’re going to compete on – especially if you’re currently focusing on price as your key differentiator or Unique Selling Point (USP).
Let me explain…
It’s difficult to get a competitive edge with price
A lot of small business owners believe when a customer makes a buying decision, it all comes down to price.
And so they offer budget prices which leave them squeezed. And whilst they may attract customers because the price is low, you’re likely to need a lot of customers to meet your target profit which in turn means a lot of grafting…
However the belief that customers are price driven is completely false.
And whilst many customers will only be satisfied if they get the ‘cheapest price’, others will be seeking the ‘go to guy’ who can take a problem off their hands and money will tend to be a low or no objection.
Price is a BIG disadvantage
If you compete on price, you’ll always be at a disadvantage.
That’s because, unless you genuinely are the cheapest (by a long way), someone will always undercut you.
So if price is your USP you’re going to be consistently under pressure to:
- Stay cheap
- Be efficient
- Cut costs
Because if you don’t, you’ll quickly lose any competitive edge that you gained.
What’s more, if you’re competing at the budget end of the market, you’re likely to have a lot less time (and money) to be able to invest in your marketing.
It’s not a good situation to find yourself in.
Higher paying customers expect more added value
In comparison, if your prices are higher, you will earn more for that same time block.
In fact, attracting higher paying customers is a simple, but extremely effective way to work less and earn more.
But to do that you need to think differently – and here are four ideas to help you make it happen.
1. Change your perception
Repeat after me “Price isn’t everything, Price isn’t everything”.
Please don’t make the mistake of dismissing value. Instead factor this into your prices.
A good place to start is to check out what your competitors at the higher end of the market offer. How do they justify their higher prices. You could find they do things which you could easily replicate. How have they established their ‘expert status’? Perhaps they deliver superior customer service. I reckon you’ll be surprised at what the difference is.
2. Offer a premium version of your existing products / services
This is a really simple way of earning more.
First take a look at your existing product offering and identify what simple changes could you make to enable you to offer a premium version of something that you already provide for a higher price.
Could you add free training to a web site package? Consultancy to accountancy services? A special gift package with a consumable? Access to a members forum with an e-learning course?
There are all manner of possibilities, simply figure out what’s right for your business and your target customer.
3. Position your business to a more affluent market
Your marketing will determine the type of customer that you attract. So take a look at how you are currently positioning your business and your brand. Is your advertising, testimonials, focus all about price? If so, how could you make it about something else? How could you twist and hone your message so it more tightly appeals to a sector of your niche who are willing to pay a premium for the added value that you offer.
Also look at how much you pay to obtain or retain a customer. If it is low or zero, this also says a lot about your customers.
4. It’s your choice
Finally you decide who you work with and it’s your decision how much you charge.
I often find that the business owner is often the key driver of the price. Perhaps there are some self-belief issues that keep your prices low because you don’t believe you deserve more… Now that’s something to chew over!
But know this.
Low prices may help you attract customers, but if you know your services / products are worth a lot more, over time resentment will build. What’s more you’ll get drained, and run down because you’re spending so much time working in and not on your business.
So if you want to work less and earn more, if you are adding really value, experiment with raising your prices.
I dare you
Hi, I'm Paul.
Husband of Michele, daddy to Isabella and Jemima, owner of over excitable dog Ben.
I developed SpinLessPlates to be the easiest to use, most time saving B2B micro business management software in the world. If you'd like to save tonnes of time managing your B2B business, simply click here to find out more.