As a small business owner in Westchester, NY, how do you charge a premium for your services? What if your potential customer or client thinks you’re too expensive?
And if price is a reflection of value, how do you show your prospective customer the value in the services or products you offer?
In the words of Warren Buffet, “Price is what you pay, value is what you get.”
Simply put, value is seen as two things:
- It’s a great price, when the value exceeds the cost.
- It’s too expensive, when the cost surpasses the potential value.
It’s a careful balance getting the right compensation for the work you do, while getting your prospective client to agree on your pricing. You don’t want to charge too much and lose these possible clients, but you also don’t want to under value the services and products you offer by pricing too low.
On the flipside, if you never have clients tell you that you’re too expensive, you’re probably not charging enough.
It’s a great price, when the value exceeds the cost.
The “existing” customer is always right. And if you, as a small business owner in Westchester, NY, follow this rule correctly, you’re on the right track to keeping that customer.
Another rule you may have heard is the “80/20 Rule,” meaning 80% of your business comes from 20% of your customers.
Plus, statistics show that it is anywhere from 5 to 10 times more costly to acquire a new customer than it is to retain an existing customer.
So in a time of tight budgets and limited manpower, your lowest hanging fruit on the sales tree is your existing customer!
As a small business owner in Westchester, NY, one of the top business resolutions you should have this year, and every year, is to have a solid marketing plan.
For those of you who don’t have a plan for 2016, it’s not too late. You can still start the new year off right by creating your business marketing plan now using our valuable how-to tips.
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A marketing plan keeps you on track toward your goals and is the ultimate guide to successfully growing your business.