Is Price The Issue?

By: Dan Kennedy on: December 9th, 2010 6 Comments

In my last post, I discussed knowing what your customer is worth and knowing who to get rid of. Let me now ask you these questions.

What is YOUR TIME worth? What is YOUR EXPERTISE worth? Here is an even better question. What are YOU worth?

You must NEVER permit competitors, industry norms, community norms to set YOUR prices.

Let me use my friend Pete Lillo, in his business as Pete-The-Printer (Pete-The-Printer.com) as simple example. Sometimes you save a lot of money by working with Pete. But sometimes you don’t. Sometimes you could get the exact same printing job for 5% less, 10%, even 15% less. But none of that matters to Pete. He knows what the added value of his reliable service, his understanding of our kind of marketing, his project management is worth to certain clients, and what his time must be worth to satisfy his own financial objectives.

For some buyers, lowest possible price will be the determining factor, and a printing buyer may scour the nation, pit vendors against each other, get bids, and fight to shave each price even by pennies, and I am not suggesting such a buyer is wrong – presumably he knows his business’ economics, the value of his time and his staff’s time, and is making the right decision for his circumstances.

But for other clients price is only one of many factors, and being able to have a truly watchful eye, getting wise counsel, having a complex project done right and done on time, that matters more. If you are Pete, you are worth more to the latter client than to the former.

In my business, I can find you lots of copywriters who will write an eight page sales letter, brochure and order form for as little as $1,500.00. I will charge at least $15,000.00 plus a royalty. And I would rarely take that assignment as is, instead getting involved in strategy, developing a multi-step, multi-media campaign. And my fee might rise to $35,000.00, $50,000.00, $75,000.00. For any number of clients, I am the wrong choice. For someone dealing in ‘small potatoes’, for example, I can’t be the choice.

But for the client attempting to launch a business with multi-million dollar potential or to fill a boot camp from which a million dollars will be earned, I may be the bargain of the century. It does not matter one whit to me what any other copywriter is charging – other than taking pleasure in being the guy charging the most.

Think of it this way: YOU decide what you are worth. Then find the kind of client or customer who has reason to accept your evaluation of that worth.

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    ABOUT THE AUTHOR:

    Dan Kennedy is internationally recognized as the 'Millionaire Maker,' helping people in just about every category of business turn their ideas into fortunes. Dan's "No B.S." approach is refreshing amidst a world of small business marketing hype and enriches those who act on his advice. For more money-making marketing tips, tactics and strategies, go to www.GKIC.com

    6 Responses

    1. John Turnbull says:

      Beyond the obvious financial benefits of charging a higher price you will also find that your marketing improves as you explain the greater value you provide to justify why the higher price is a bargain, and you hopefully get a better customer.

    2. Ray Higdon says:

      Amen, firing clients is something more people should do.

    3. I love the Maxwell Maltz’s story of sitting in his surgery with no clients and having to stop from rushing to pick up the phone to increase his perceived value.

    4. Ralph Portee says:

      How do I get on the facebook?

    5. It’s become an alarm bell for me if a client asks for a lower price.

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