Knowing when to price high and when to price low

Knowing when to price high and when to price low

Knowing when to price high and when to price low

Understanding your market, your product offering and the value you bring will help you determine your pricing.

I often get asked by my Virtual Assistant coaching students on how they should price their services. So it’s appropriate then that we go through it here as well.

Who is your customer?

Do you know who are your customer is? It is vital that you understand your target market, the way they think, where they hang out socially, the kind of support they require. If you don’t know any of these stats, it’s going to be very difficult to position yourself in the market and ultimately price your services just right. Knowing your customer will ensure that you can peg your service offering at a higher mark, as you’ll be able to speak to that level of customer directly purely because you know the above stats.

What value does your service bring?

Showing your customer off the bat the level of value you bring to their account will immediately ensure your foot in the door. If there’s absolutely no question or doubt in your prospect’s mind then your so called high fee is justified and you’re off to a great start. But know the value you bring. Say it, know it, understand it.

What kind of choices do you offer your customer?

You can offer an entry level service for instance, where you only respond to emails, update calendar entries and capture data. Or you can offer the full monty, and be everything a conventional PA would offer to a C-level executive. With choices (different packages) you can offer your services to quite a few different verticals of customer base.

How much are your competitors charging?

This is a good indication of what your audience is willing to pay. Some Virtual Assistants completely undervalue themselves by charging R50 per hour, and then you’ll find VA’s offering their support at R450 per hour. Ask yourself, how is it possible to charge R450 per hour? What kind of marketing strategy should I have in order to compliment this? Who is my ideal audience that would be willing to pay that amount? Don’t undervalue yourself and by doing so do yourself in. Peg your price high and bring value to the table.

Conclusion

When calculating your price points, know who your target market is, understand their pain and know the level of value your service offering will bring them to ease their day and diminish the pain they are experiencing. The more valuable you become to your customer the more difficult it is for them to walk away.

Know your market, understand your strengths and make it work for you!