How To Charge Higher Prices For Your Services

how to charge higher prices for your products and services.
How To Charge Higher Prices

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If you click the above image you’ll begin to understand what the ascension model CAN look like for many of the big guru names, especially in the marketing, coaching, and information communities.

The ascension model is also present in just about every industry you can think of.

Hopefully, we can use some real world analogies and explanations to make this a meaningful and helpful post for you as it applies to your business.

Too often businesses think that pricing is their only competitive advantage and that the only reason the bigger companies can charge more is due to their size….I hope I can dispel this myth for you today.

Pricing does involve strategy, and dependent on whether or not you are choosing to become an agency or you’re focused on being a premium priced brand, you’ll use pricing in different ways for different purposes.

Let me see if I can’t show you how pricing works when applied to big brand names in business.

Let’s take Ford and Rolls Royce.

Both of them manufacture cars, but their prices appeal to exceedingly different clientele budgets.

On the surface, Ford’s strategy is to mass produce a large quantity of affordable and efficient vehicles, with a few choices in size and functionality and price points, largely (of course there are some exceptions) on the lowe end to appeal to the majority of people.

Its the classic low price for decent value strategy.

Rolls Royce, on the other hand, only produces a limited amount of vehicles each year, which I believe might only range in the hundreds…not thousands of cars produced.

Each vehicle is custom made by a team, and not on an assembly line, as does Ford.

The marketing and pricing of these vehicles is aimed at the affluent minority.

They literally make vehicles that only the few can afford, and using this model can make just as much money, if not more, than Ford.

The bottom line is you can design your business however you want, but if you want to charge more then you’re going to have to design your business to appeal to the minority.

The way it works in the information business is to “weed out” the ones that will pay more, but sometimes the only way to figure out who those folks are…especially when getting started, is to “let folks in” the front door.

You have to bait them in and let them get a taste of what you do.

A do it yourself informational product, a how to guide, etc. is the perfect way to kill two birds with one stone.

You can help people solve their own problems by giving them the knowledge and know how on how to leverage their own elbow grease to, hopefully, achieve a desired outcome.

It also solidifies your established credibility as an “expert” and someone who knows what they’re talking about.

Another benefit, a side benefit that not everyone understands how to leverage is that as you get your stuff out there, you’ll discover you will also start getting calls from folks who would like more of your stuff…they literally want more of you.

Now, I’m not sure about you but if someone wants more of me, if I have to literally spend more of my time with them than I would doing something else, I want to get compensated for that tradeoff.

I suggest you do the same thing.

The easiest analogy I have here for you is to consider the music industry.

In the music industry, what the mass media shows the public are the folks who are on top.

You didn’t get to see their struggles, you didn’t watch their way to the top, all you see is that they are AT the top.

But guess what…if you want, you can have a piece of them.

You can buy their hit single on sites like itunes or amazon.

You can buy their albums, which might cost more.

You can buy they’re compilation albums, if they have them…it’ll cost even more.

You can go to one of their concerts and see them live…more still.

A select few members of society might even be able to get the stars to show up at a private event for a fee that the majority just can’t afford…and here my friends reading this, is where the magic is for us marketing folks.

If you watch a show like American Idol or X Factor (that title is interesting because I’m a member of Offline X Factor), you’ll literally see the ascension model in action.

The funny thing is….as we watch…we grow to like, then love these folks that are climbing to the top.

That AFFINITY…that TRUST, that’s the stuff that great relationships and the ability to charge higher prices are made of.

I hope that made sense and would love to get your thoughts in the comments below.

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