Cutting costs as a means of competing on price or by being a cheaper entrepreneur with the least expensive product than your competitor is not the way you position yourself for success. Now, raising your prices is a better position. Many people do not think about that alternative. A unique positioning tool would be to look what your competitors are charging and charge more.
The natural tendency is to look at what your competitors are charging and charge less. Well, you're competing in price. When it comes to price somebody could always charge less and undercut you. They can cut a better deal. However, one of the strategies in positioning is to look at what your competitors are charging and charge more. Go ahead charge $50 more or $100 more. Charge whatever is right for your product or service.
As a speaker, after i was at an industry where I would have a competitor on a single topic come in to the market, I'd raise my prices over my competitor. For example, let's say that my speaker fee in those days was 5000 bucks. Let's say that the competitor who came in on a single subject charged 5000 bucks, too. I would raise mine to 6500 very quickly. If you feel about this in your mind should you look at two people, let's take these 2 speakers, for example. You are taking a speaker who's 5000 bucks, and you compare him to the one who is 6500. Let's assume they have the same topic, and let's assume they are the same quality speaker. That do you believe is the better person, the greater speaker? Odds are the planner or hiring organization thinks the greater candidate is the one who charges more.
Higher prices equal better quality is the most irrational thing we have to understand within our business as entrepreneurs and speakers. We always think from a positioning standpoint that whoever charges a little bit more must be better. As a matter fact, here is a personal story as one example of this time. I went to buy a camera. It was one of those little digital camera models because I had broken mine. I go up to the guy who is employed in there. It was an outlet with a lot of customers in it, major chain store.
I said, "Hey buddy, I need a brand new camera here and I need to be capable of taking digital pictures and videos." I am looking at the shelf, and there are 2 cameras that look identical with the same manufacturer, but one is $199 and the other is $299. I ask the sales guy, "Hey buddy, I do not get it." I said, "There are 2 cameras here. They look identical, but one is $100 more. What's the deal?"
He looks around, and he offers, "Look, seriously, it is not that big of the difference." He is whispering, "There is not that big of the difference. The screen on the expensive one is just a little bit bigger, a little bit bigger. If you can cope with it not a bit bigger." By the way in which, I could not really tell the difference since the display size. He continued, "Just get the cheaper one and save 100 bucks." Not certain that the only real difference is the display size, I put my hand on my small chin refusing, "Nah, there has to be a reason, a bigger reason that this one is more epensive."
He goes, "Buddy look, I am suggesting. I have been working here for Five to six years, there isn't any distinction between the two cameras. Save yourself 100 bucks." "Nah, I simply cannot. There's reached be a reason why it's $100 more." Now, he gets irritated beside me and that he says, "I'm suggesting. Look, I sell this stuff all the time. There is no difference." What camera do you consider I ended up buying? I acquired the greater expensive one. I simply couldn't have it through my head that the one that was cheaper was better or by good a quality as the expensive one. There are lots of ways in which you position yourself uniquely, only one of them, the significant one to consider, is on your price.
For those reading this article, I have not had the honor and also the privilege of having met you. However, I can almost guarantee you, whatever your prices are for whatever it is that you are offer to potential prospects, you're undervaluing and undercharging for your time, knowledge, experience, expertise and your service or product. Therefore, be very cautious on underpricing yourself and your business because it is a poor, poor positioning tool.
The natural tendency is to look at what your competitors are charging and charge less. Well, you're competing in price. When it comes to price somebody could always charge less and undercut you. They can cut a better deal. However, one of the strategies in positioning is to look at what your competitors are charging and charge more. Go ahead charge $50 more or $100 more. Charge whatever is right for your product or service.
As a speaker, after i was at an industry where I would have a competitor on a single topic come in to the market, I'd raise my prices over my competitor. For example, let's say that my speaker fee in those days was 5000 bucks. Let's say that the competitor who came in on a single subject charged 5000 bucks, too. I would raise mine to 6500 very quickly. If you feel about this in your mind should you look at two people, let's take these 2 speakers, for example. You are taking a speaker who's 5000 bucks, and you compare him to the one who is 6500. Let's assume they have the same topic, and let's assume they are the same quality speaker. That do you believe is the better person, the greater speaker? Odds are the planner or hiring organization thinks the greater candidate is the one who charges more.
Higher prices equal better quality is the most irrational thing we have to understand within our business as entrepreneurs and speakers. We always think from a positioning standpoint that whoever charges a little bit more must be better. As a matter fact, here is a personal story as one example of this time. I went to buy a camera. It was one of those little digital camera models because I had broken mine. I go up to the guy who is employed in there. It was an outlet with a lot of customers in it, major chain store.
I said, "Hey buddy, I need a brand new camera here and I need to be capable of taking digital pictures and videos." I am looking at the shelf, and there are 2 cameras that look identical with the same manufacturer, but one is $199 and the other is $299. I ask the sales guy, "Hey buddy, I do not get it." I said, "There are 2 cameras here. They look identical, but one is $100 more. What's the deal?"
He looks around, and he offers, "Look, seriously, it is not that big of the difference." He is whispering, "There is not that big of the difference. The screen on the expensive one is just a little bit bigger, a little bit bigger. If you can cope with it not a bit bigger." By the way in which, I could not really tell the difference since the display size. He continued, "Just get the cheaper one and save 100 bucks." Not certain that the only real difference is the display size, I put my hand on my small chin refusing, "Nah, there has to be a reason, a bigger reason that this one is more epensive."
He goes, "Buddy look, I am suggesting. I have been working here for Five to six years, there isn't any distinction between the two cameras. Save yourself 100 bucks." "Nah, I simply cannot. There's reached be a reason why it's $100 more." Now, he gets irritated beside me and that he says, "I'm suggesting. Look, I sell this stuff all the time. There is no difference." What camera do you consider I ended up buying? I acquired the greater expensive one. I simply couldn't have it through my head that the one that was cheaper was better or by good a quality as the expensive one. There are lots of ways in which you position yourself uniquely, only one of them, the significant one to consider, is on your price.
For those reading this article, I have not had the honor and also the privilege of having met you. However, I can almost guarantee you, whatever your prices are for whatever it is that you are offer to potential prospects, you're undervaluing and undercharging for your time, knowledge, experience, expertise and your service or product. Therefore, be very cautious on underpricing yourself and your business because it is a poor, poor positioning tool.
About the Author:
James Malinchak, Showcased on ABC's Hit Television Show Secret Millionaire, is considered by many people professionals as the World's #1 Big Money Speaker Coach and Trainer. For Free Video Trainings concerning how to receive money to speak and how to be a inspirational speaker, go to http://www.millionairespeakersecrets.com/.
