Earning potential is controllable, but many of the people I talk to do not believe that we can take our power back to create wealth. I do not care to have people control my earning potential. I noticed that many people would suppress others from reaching higher profitability by holding them back in various ways. Many people talk about how they hate people to control them, but they attempt to control others passively-aggressively. Psychological tricks are all around us. Although I believe that we can benefit from some psychological studies, many of the studies are used to manipulate the masses instead of teaching us to improve on things like understanding how we can better communicate with each other.
To improve profits, we have first to check our pricing. How are you creating pricing in your business? In my pricing course, “Creating A Fair and Profitable Pricing Plan,” I will show the business owner what it takes to create a pricing plan that works for your business. Many business owners set the pricing by what the client says they want to pay. Why does this happen? Most people will select a lower price, although they can pay your fee. People pay what you allow. You, as the business owner, will need to stop guessing at what will sell.
Psychological negotiation tricks will impact your business if you do not stand firm on your pricing.
-Y. Michelle Coard
How can we stand firm on pricing? We need to understand pricing. Just because you earn money does not mean you made a profit. Profit is the difference between what we earn in sales/revenue and what we spend. If you give up profit to just to feel like you have earned money, you are paying people to work with you. Many people will love this, but you will lose those clients when you try to raise pricing. I can tell you from experience people do not appreciate a reasonable price.
Although your price will fit into the client’s ideal, the client may still attempt to hold out for an even lower price. I did not understand this and often gave away too much trying to meet what they desired, but I created a loss of time and money on my side. When I was reading through articles to understand what was happening, I ran across this piece of information:
Naturally, this is why accounting and sales don’t get along because we know if we set a price, we do it because we know what we have to charge. The salesperson is only focused on getting the deal. Beware because this is one of the reasons most business owners must close.
Learn more about pricing for profit in your business.
“Building A Fair and Profitable Pricing Plan.”