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When Lowering Your Rates Doesn't Make Sense:
5 Tips for Pricing Your Service or Product in a Down Economy
 
woman at computer upsetThe competition is tough out there. Your customers are shopping around for the best deal. If -you sell products, they are comparing yours to the ones down the street. If you market a service, they may ask you to lower your price or match someone else's.

But is lowering your prices the best way to keep the clients you have and gain new ones? Five pricing tips:

1. Value your own skills, experience, and expertise. Seems like a no-brainer, but your confidence in yourself and the value of what you provide for your customers will come through.

2. Remember that the price wars path is a slippery one. There is always someone willing to undercut you in order to make a sale. Many times, in order to offer that price, they must skimp somewhere else, like on quality or customer service. Do you really want to compete with them and attract the kinds of clients who don't value what you do for them?

3. Provide added value. Instead of being the low-priced bidder, consider throwing in something extra. For instance, when you design a blog for a client, give them a DVD that shows them how to manage it as a bonus gift. It will build loyalty and goodwill.

4. Attach a dollar value to your time (or product) and always communicate that value. If you give a client or prospect a report or an e-book, print its normal cost on the cover ($19.99, $29.99) or whatever.) And consider offering that same e-book for sale on your web site so they recognize the value of it.

5. Go out of your way to exceed every one of your customers' expectations. In the present climate, it is more important than ever to anticipate and fulfill every one of your client's needs. Promise a completed project by Friday and deliver it on Thursday. Ask how a product is working for them-after the sale. Fix problems immediately. You will be remembered.

The economy will recover. It always does. With a little more focus on added value and customer service, you won't have to be in the position of lowering your prices only to be faced with having to raise them again when all this is over.
© Marketing Hotspots - Cat's Eye Marketing 2009 - Vol. 2, Issue 5

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This article appears courtesy of Marketing Hotspots, a free marketing e-tip dedicated to finding perfect marketing solutions for time-challenged small business owners. For a complimentary subscription, visit www.catseyemarketing.com/etips.