So, of course most of the time I’m telling clients that they need to raise their prices. My coaches have told me that, SO many others I’ve talked to tell me stories about their clients needing to charge more, and I’m famous for telling people the same thing.
BUT… there is something I just witnessed this weekend that goes in the opposite direction and I wanted to share it with you so you don’t miss this powerful lesson as well.
So on Saturday, Cindy and I stopped at a coffee shop that I’ve driven past at least 50 times and keep meaning to go to but just hadn’t made the time to stop in yet.
I’m happy that I did because I will never wonder what they are like again… and I will never be back.
It wasn’t that the location was bad. In fact I think it would be a great place to stop for a meeting or to bring my laptop and get some work done. The space inside was great. The coffee was good. In fact the service was “ok” as well. Not great by any means but not bad.
What got me was that their largest coffee was a 16 ounce (at 20 ounce prices) AND they charged me 50 Cents extra for the whipped cream on my mocha. SERIOUSLY?!
Now that isn’t much money and I’m not a cheapskate, but come on!
With “ok” service and “ok” coffee, the super high prices just blew me away.
Especially with the extra cost.
Now, this isn’t about the 50 cents. It’s about the experience. We have to remember that our client’s experience is what leaves a lasting impression with them and gets them to come back. I’m sure that charging for the extras increases their perceived bottom line. But at what expense?
When everything else in their store was “ok” what gives them the right to charge more than pretty much almost everyone else.
The only time I’ve paid more than that for my coffee was when I’ve been in hotels that jack the prices of everything and you’re stuck there with no other option.
I’d bet that the owners think they are increasing the overall profit but are looking at the “per sale” income and not the overall income. I bet that those prices and the “extras” are actually costing them a lot of repeat clients. I know I’m one of them.
Where’s nothing wrong with charging premium prices as long as you’re providing premium value as well. That’s the entire point of this rant.
Are you going the extra mile for your clients? Are you adding in some extra that they will remember? These guys weren’t. They were “ok” for everything EXCEPT their pricing.
And, don’t Nickel & Dime them to death.
This is the thing that’s killing the relationship people have with so many industries right now.
Example: The airline industry. You get a price but then they have a bunch of extra fees added on so the price you thought it was ins’t actually the price.
…and don’t forget about luggage. That’s extra too.
Hotels do this as well. I’ve stayed at hotels that were $150 per night but then they added in “Business services” (which I never use), “Resort fees” (which I’m not even sure what those even are and don’t use), WiFi fees, and don’t forget “parking fees” (which should just be included).
Why not just say it’s $175 per night and include everything as part of the price instead of all the extra fees?
Now, these are extreme examples but I’m sure you’ve ran into things like this before, right?
These are perfect examples of how NOT to build rapport and a great experience with clients. Every time you add resistance to the sale, you’re adding one more step of displeasure.
It’s like a mosquito. They aren’t big but you get enough of them biting you, you’re going to go nuts.
Now I’m sure that most of you aren’t making things complicated like these companies are but I’d suggest that you take a big look at your business. Look at your products, and processes. What’s your sales funnel? Look at the entire process as if you were the customer and see how you would feel if you were to go through the process.
Where are the resistance points? Where are you adding friction to the process that could leave your customers unhappy?
Fix those and make the buying experience as simple as possible (along with adding great value) and you’ve got raving fans that will come back over and over while dragging their friends in with them.
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About The Author:
Ely Delaney is a dad, Best Selling author, speaker, marketing consultant and Founder/CEO of Your Marketing University. His goal is to teach marketing in a simple easy to understand format businesses can use to help gain marketing ideas & market their businesses to boost sales.
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