Undercutting and Under-pricing. It’s really about Undervaluing.
Somebody just undercut me! Why would they do that? People don’t charge enough for their workshops and training! Why would they do that? It’s human nature to become aggressive, ruthless, greedy, and even downright nasty, when money becomes involved. But the real question is about undervaluing. Who we are, and what we provide.
People can undercut someone else because they are desperate for the money. This is counterproductive for their business, because the client senses that, and uses it as a lever to drive their price down even further. It also means that they have to work harder, or longer, to earn the same amount, as if they were charging more. It’s bad business.
Others can charge less than you due to ignorance about what they could really be earning. We often look down, instead of up, when we’re charging. For example, a yoga teacher, or a masseur “may” charge $50 per hour, so we think that we have to also. But that’s not who we are, or what we do, yet we tend to bundle ourselves into that category. Look up people!
The price that you charge is determined by your business plan. What you actually get is determined by the customer. This whole thing is a game to get as much money off the customer as you can, and that is by showing them that you, and your product, are valuable. Charging cheap implies cheap. The opposite of valuable is worthless.
Here are 5 things you can do to increase your prices.
- Value you: Imagine that you were the best Laughter Yoga presenter in the world. Would the customer expect you to be cheap? Talking ourselves up is something that’s a learned skill. Just be careful about going overboard though as you will be caught out really quickly.
- Value your product: Your product or service that you offer has to solve a problem. You really need to know your market, the problems that they have, and the effectiveness you have to address them. This is what’s known as market research.
- Charge high: The customer, when told your price, should say “That’s too dear”. Remember that you can always negotiate your fees down, but you can’t go up.
- The customer determines what you will get, and not what you should charge: Business is a game of money. So you need to know the rules and there’s only one. Those who have the money have the power. At the end of the day it’s the customer that will tell you how much you will get.
- Be prepared to say no: Having said point number 4, remember one thing. You have the power to walk away. You get the customers that you deserve, so avoid the bad ones. Or give them to your competition ha ha ha.
If you have any further questions regarding pricing and fees then please feel free to email me at email@example.com at any time. Any recommendations for future topics are also appreciated.
Merv Neal is a Laughter Yoga Master Trainer and the CEO of Laughter Yoga Australia and New Zealand. He has successfully owned and operated his own businesses for more than 42 years. He has created a Laughter Yoga Business Training Program, as well as the Business Mentors and Coaches Program, to help others to take Laughter Yoga to commercial organizations, and/or to create a Laughter Yoga business of their own. More information can be found at http://www.laughteryogaaustralia.org or http://www.mervneal.com