Don’t cut your price. Instead, increase your value.
Cash is king, Donald Trump talks about this a lot and the same thing applies to how you price. In today’s market, it’s very easy to think the only way to close a deal is by cutting your price, if you’ve been following what I’ve been saying for a long time, you know that my position on this is firm — don’t cut your price, period!
If you’re pushed and you can’t get the customer to see and appreciate the value you’re offering them, then look to increase what you offer. Start first by offering to the customer something they will perceive as high value but that you can offer at a low cost to you. This is critical. Do not think by merely offering the customer something more you will both get the sale and make your profit number. When you look at what to offer them, be sure to also offer them something they will only need once. If you offer them something they will want time and time again, then you run the risk of having the added item or service become part of the on-going offer. Doing so will severely impact the profit you could make long term from this customer.
Look at this way: If you offer to the customer something that will cost you a lot, then all you’ve done is given up your profit. This is really no different than cutting your price. Keep in mind that increasing your value requires you to know what is important to the customer. This means you have to have spent time upfront asking questions that get the customer to reveal this information.
