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Mark Wickersham (UK):
Debunking the myth of price sensitivity
One of the big myths I hear over and
over again – and one of the main things holding us back with our pricing – is that our clients are price sensitive. Research by behavioural
economists suggests that the number of price-sensitive people in society is about one in five, or 20%. And a typical example might be
someone who’s retired,
who collects the free newspapers
and goes through them every
weekend meticulously cutting out the 3p-off food vouchers. So I admit all they care about is
price. They’ve got time on their hands.
But what I also know is that they’re not your clients. And, if they are,
then you may want to revisit your ideal client process! Your ideal clients aren’t in that 20%
To repeat: your ideal clients don’t
form part of that 20%. To prove it,
think about them for a minute. Do any of them visit Starbucks or Costa coffee? If they do, then by definition
they’re not price sensitive because there are far cheaper ways of getting their coffee fix! Similarly, have you got any clients who
own an Apple product? Maybe an iPhone or an iPad? If so, again, by
definition, they can’t be price sensitive. There are much cheaper options available. Price is only part of the equation
What this shows is that most people
aren’t price sensitive. They’re value sensitive. These are two very different things, and once we understand that everything changes. Check out:
The Power of Price Psychology
In case you missed this:
(More of Mark!)
Better pricing = higher profits
If you have a service business, you can
earn much more from this series. Also, Mark runs a programme called
Price Consulting, and he teaches
accountants/bookkeepers how to help their customers with their pricing. Thank you for the positive response to
posts on this topic and the action taken. Please tell your friends!
Those links again:
How to build a successful bookkeeping
business (book) How to build a successful bookkeeping
business (video training programme) The Value Pricing System
The Power of Price Psychology
Monthly Mentoring
Grab them NOW and claim the true income
that you earn!
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