Internet Marketing – Your clients aren’t price sensitive – 2

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
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
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!
Price accounting and consulting
services more profitably!
Silvia at IFRSbox.
If you are in finance and not on her
FREE list (WHY NOT?):


Use mine free as often as you want!

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