Have you ever had someone comment that what your product or service is too expensive?
This situation happened to a small business owner that I recently reviewed in an online article.
Her immediate reaction and impulse was to lower to price of the two day short course that she has worked so hard to put together for her customers.
When she told me this, all sorts of red flags went off in my head. I can certainly understand a new small business owner's anxiety over receiving this type of one-off feedback. I can also understand where the person who made the comment may have been coming from, however, I am 100% certain that we should not make rash decisions on pricing of our products and services without deeper investigation in to the truth of the statement.
Here is what to do when someone says, "Your product/service is too expensive!"
- Take a 'Money Breath' - stop and breathe in for a count of three, hold it for one and then release for a count of six. This will allow your mind and nervous system the space they need to assess what is actually being said to you.
- Don't Panic! If you're a Hitch Hickers Guide to the Galaxy fan, then grab your towel and keep breathing.
- Remember that this is a statement made by one person only and therefore only their personal opinion/observation. Before you go changing your pricing, you need to take the time to investigate if this is an accurate reflection of your customers fiscal demographic.
- Acknowledge what they have said by asking them, "How do you mean?" It is important to understand what the underlying objection is as in reality that is what is happening.
- Thank them for their feedback and listen to what they say when they respond to your first question. This is where you will be able to qualify what is going on inside their mind and understand if this statement was an offhand comment or something you should take notice of.
- Remember that people pay for what they value. If they truly want what you have to offer, they will find the money, even if they have to pay it off. People will often tell you that something is too expensive because what you have to offer is not high on their priority list.
- Just say, "NEXT!" Not everyone will want what you have to offer and there are people out there that do want it and they will pay for it. So just say, "Next," and move on to the people who fall into your target market.
- Do not allow yourself to give your personal power away by listening to only one opinion/observation. Take a survey and research a cross-section of people in your target market to qualify the truth of that one person's feedback.
- Lastly, have faith in yourself, your product and your service. You have put a lot of time, effort and personal energy into creating what you have to offer. Someone will want it and they will pay for it at the price you are asking for. Hang in there.
If, after you have done further research and experience from multiple clients/customers are telling you that you are charging too much, you will need to address this discrepancy. At this time, you will feel empowered and the one in control of what you are doing, rather that being at the mercy of one person and their take on what is too much to pay for a particular product or service.