Value Pricing Versus Package Pricing
What is value pricing? Value pricing is the concept that people will pay paid on the value they feel you offer. The other side of this scenario is the business owner may price at the value they feel they are worth. I cover the problem with this in the blog "Determining Who Controls Pricing for Your Business". Package pricing is pulling together a group of services that the client will benefit from or a product package that the client will need. Coming soon, I will offer an accounting implementation package that includes everything the business owner will need to set up accounting in your business properly. I would like to see the business owner receive trained, experienced, accounting advice to help increase profits and eliminate the idea that small business owners can’t take paid time off.
Basing an offering only on the value perceived by the client places the price control into the customers’ hands. All customers will automatically know the value they will receive is high, but they want a low price. People want more for less these days, so it is up to the business owner to stand firm. The “know your value” is an abstract idea that only creates prices that do not match the service or the product; therefore, all consumers now use it against all business owners. Find a way for customers to see the knowledge you offer without having to give away services. Honestly, people will keep taking these services until you realize what they are doing, and then it is on to the next person giving away free services. Read the blog "Why Free Is Not Win Win" Sadly, people know that most business owners don’t understand how to offer their services and, most of the time, it’s waiting out the customer who will soon learn you get what you don’t pay for in business.
Free is not always a good thing, and 9 out of 10 times, someone foots the bill. In business, the business owner goes without pay, hoping the consumer will see what they offer is real and will purchase services. Free appointments need to lead to paid services, and when someone is continually trying to get free services, let them go. Ignore the excuse that they must verify what you know is valid if your knowledge is showcased on your website or somewhere they have access.
Offer package pricing if you like to help with the cost, but each service usually has its price. Learn more about pricing to understand better package pricing in the course “How To Build A Fair & Profit Pricing Plan.”
Written By: Y. Michelle Coard, B.A.S. & A.A.S Degrees In Accounting
Owner, Accountant, and Profit Strategist