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Many of us have this false belief that we have to price our products and services economically due to competition and economic downtown. In order to get out of the rat race we must first remove ourselves. If you operate in accordance with what everyone else is doing you’re only prolonging or erasing your final victory.
In the past I tried to lower my prices significantly to “crush the competition”, I only ended up crushing my damn self. There’s a concept I now adhere to called “working smarter not harder”. Pick one of the following
Which one would you be more motivated to do? Everyone in their right minds will choose the first option. The pros of offering cheap products and services is the chance of attracting impulsive consumers but the cons outweigh the pros. Usually when people pay for cheap things they are cheap themselves. Quite often will these kind of people attempt to get a further discount from the discount their already getting. Its easy to negotiate a lower deal when you have a valued priced product. 80-1000%+ profit and you have nothing to loose but its incredibly hard to negotiate when you are offering a cheap service/product and cutting the cost will cut into the low profit that you’re already receiving.
Have you ever sat back and watched another entrepreneur, company etc be able to sale expensive products and services meanwhile you struggle to sell at an economically correct price? Have you ever wondered why people pay $2500 for handbags at Louis Vuitton when there are $5 handbags at your local consignment shop? People pay for what they see value in and they’re not wrong for doing so. When people spend thousands of dollars at high end retail stores they’re paying for the experience, they have a higher sense of confidence because they made a higher investment, they’re going to take pride in and care of what they’ve consumed where as they would just end up throwing the $5 goodwill item in the back of the closet, leave it on the floor etc and treat it like a cheap investment.
How do you feel when you made an high investment, when you had to work in order to acquire something? You appreciate it, you take care of it, you treat it as if its dear to you. For example I have some cheap shoes that on a bad day you can find just throwed on the floor by the door but my expensive shoes are neatly stored in my closet although I am appreciative of everything I have my more expensive investments get better treatment.
Do you want to be that cheap shoe throwed around on the floor or do you want to be that expensive shoe taken care of and properly stored? From this day forward price your product and services wisely, to profit. Cheap does not mean people are always going to buy, trust me I know I had a few 99 cent ebooks I spent so much time on that went absolutely no damn where.
If my previous personal examples don’t help you maybe this next one will. 30 days come and go. Imagine yourself without friends, family, spouses etc to get a loan as I have been. Your leasing office, landlord etc gives not a damn why you cannot fulfill your obligations to pay your rent. You will get evicted, I have been evicted….that’s not a great feeling. Realize you only have 2 options. Go Higher or Go Homeless, choose one.