How to increase what others are happy to pay you
In this post, i’m gonna help you to increase the amount that people are happy to pay for the products or services that you deliver. For years now, i’ve seen people struggling who provide a really great product or service, but they just struggle to make the profits that they deserve.And when I talk about making profits that you deserve, that doesn’t mean ripping people off. It just means getting the amount that you need or you want, which is in line with what you’re delivering for others.
So let’s talk about how we can increase what people will pay and be happy to pay for the things you do.
First of all, we have to talk about self esteem and self belief, and they’re not really the topics for this post. But if you’ve got issues around self esteem and self belief, you need to get working on those first of all, because if you don’t believe that you are worth more than you’re currently getting for the products and services you deliver, then the rest of this video just won’t quite help. So you need to be getting over some of that stuff as well.
In this post, I want to talk about the more functional, more practical aspects of raising your prices to the level that you need in order to provide the products and services you deliver. Now there’s really three factors in all of this.
First of all, it’s the who. If you’re trying to sell to an audience that can’t afford the things you do, it’s never gonna work.
Secondly, it’s the need if you’ve identified the need involved, but it’s really no a need, then you’re going to struggle to keep it in your prices up.
And thirdly it’s about the help you’ve given them to understand the value that you’re going to provide them, that ties into the emotional aspect. So have you really helped them to see what it is you’re going to achieve for them? Not just the function but the emotional change and, all of that side of things which helped them to put a higher value on what you do.
Outside of looking at those three things, there’s a financial aspect to look at, but i’ll cover right at the end, so we’ll come on to the finances later. But first of all, it’s more about how do we actually achieve this increase in the value you receive and people still want to, give you what it is you need.
Okay, so, back to who. You’ve got to have the right who. If you have absolutely targeted in on the right kind of people, the kind of people who can afford to pay for what it is you do or are willing to pay for what it is you do, then you’re in the right area.
Of course, if you’re trying to sell something to somebody who’s just not interested, you’re never gonna increase that price. So, for example, i’m not really a big car fan. I use a car to get from A to B, so you can’t just keep putting the price up on the car and expect to try and sell it to me because I love cars, because I don’t. They’re just a function to me.
But to somebody else, if you found the right avatar, somebody who really does love cars and car brands, then you can probably increase the price to them in a way you couldn’t to me. That highlights the ‘who’. You need to be talking to the right person, and i’ve covered that in other posts, but definitely make sure you’ve got the right wh. Somebody who can afford and cares enough about what it is you do.
Secondly, the need. What need is it that you’re fulfilling and is the need strong enough? If i’m laid out in back pain and I can’t go to work, that’s probably a little bit different to if i’ve got a few aches and pains in my back, the need is different. It’s the same thing. It’s back pain, but the level is completely different. So what need is it that you’re now trying to provide a solution to? Is it really a need or is it kind of the need?
Over and above the ‘who’ and the ‘need’ which are really important, the most important thing in order to get you the value you deserve is your ability to communicate all of the things that your solution provides. This ties into the ‘why’ do they really need it? And the emotional aspect. So the more you can explain what your particular product or service takes care of, the more people will be willing to pay for it.
Notice when you look at buying some things, and they have all of these add on things that you get when you come to buy it, and some of those add on things you don’t necessarily need. So why have they just listed so many things that the product or service will solve? Why? Because they’re building up the value of what you get, and that’s what’s really important.
We have to focus on the value exchange that’s going on. How much is somebody willing to pay for what you’ve got? Well, it depends how much you explain what you’ve got, and what it’s going to do for them.
I’m going to talk about the financial aspect. You’ve got to understand your numbers, because this is where lifetime customer value comes in. I’ve got a post on that in my ‘Five Questions’. You’ve got to understand cost of acquisition too. When you understand these numbers and your return on investment, then you can start understanding whether you need to be increasing prices or not, I wouldn’t say for everybody you need to increase your prices, but you do need to receive the value you deserve for your products and services. When was the last time you had a price increase and what drove you to the price increase?
To summarise, we need to look at ‘who’. Is that who, somebody who can afford to pay what it is you need? Are you talking to the right person? Secondly, ‘need’, is that need big enough that they’re gonna be willing to pay more for a solution? Thirdly, have you explained it well enough? You know, have you tapped into the ’emotional aspect’, those triggers we spoke about. So the who, the need, and how much you’ve explained it to them a really, really critical.
Pricing can be a difficult and even sensitive area of business. If you would like to work with me to get your pricing optimal, just use the form below.
Work with Elton
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