When someone asks how much your product costs, they are giving you a buying signal.
This is a great opportunity to make a sale!
Depending on which stage of business you’re in (just starting, recently opened or more established), you might answer it three different ways:
If you’ve been in business a while, you’ll probably jump on such an opportunity straight away.
But if you’ve only been trading a short time, you may simply answer the question with a price..and leave it there 🙁
Follow it up immediately with some questions of your own to start closing the sale – strike whilst the iron is hot.
If someone asks you the cost they are interested in buying.
Don’t assume you can give them the cost and leave it to them to buy; you need to elicit their feedback, deal with objections, perhaps sweeten the deal.
Whatever you need to do, it is a great opportunity to make a sale.
Finally, if you’ve only just started your business you may not feel comfortable with your pricing yet.
Many people new to business, particularly those with service products, aren’t sure how much to charge.
(let alone know how to then close the sale after someone asks “How much?”)
There are two methods you could use:
- Start at your topline price, then move down accordingly (or use other negotiation variables)
- Start at your bottomline price to close the sale there and then
The first method is the best for your business in the long run.
However, if you’re just starting out you may be so eager to get clients and get moving (and testimonials) that the second option is the most appealing.
The key with the second method is to use it with your first client, then with each subsequent client bring that bottomline price up a little.
So, for example, if you ideally wanted to charge £50 p/h as your topline for your services, but are just starting out, you may charge £20 p/h to the first client you get, then £25 p/h to the second client, £30 for the third, and so on.
Regardless of where you start, there’s nothing to stop you continuing beyond your target topline figure (i.e. once you hit £50 p/h then move to £60 p/h and so on).
As soon as you are actually selling at your topline price you should raise it, and keep raising it with each sale at that price-point until you find your pricing ceiling.
And when you hit that ceiling, look for ways to add value…then raise your prices further!
Questions, thoughts or comments? Share them below:
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