People who come to you price, will leave you on price

May 08, 2023

As a business owner, it's easy to fall into the trap of thinking that price is the most important factor when it comes to attracting and retaining clients. However, this couldn't be further from the truth. In fact, people who come to your business solely based on price are likely to leave you just as quickly when a cheaper alternative comes along. I learned this the hard way when I first started out in business.

I engaged a telemarketing agency to book appointments for me, and I would drive around meeting with potential clients. My pricing strategy was simple: I would look at their accounts, see what they were currently paying, and quote them a price just under that. This approach worked like a charm, and I started winning clients left and right. I thought I had found the perfect formula for success.

However, two years later, I got a call from another telemarketer who had undercut me and won one of my clients. It was a wake-up call for me, and I realized that people who come to your business based on price alone are not loyal. They will leave you in a heartbeat if someone else comes along offering a better deal.

The truth is, most people in society are not price-sensitive. They are value-sensitive. If they buy their coffee from Costa or Starbucks, they can't be price-sensitive because there are much cheaper ways to get their caffeine fix. If they have an iPhone, they can't be price-sensitive because there are much cheaper models of phone available. If they drive a luxury car, they can't be price-sensitive because there are much cheaper models they could have chosen.

So, what does this mean for your business? It means that you need to focus on providing value to your clients, rather than simply competing on price. Here are some tips to help you do just that:

  1. Understand your clients' needs and goals: Before you can provide value to your clients, you need to understand what they are looking for. What are their pain points? What are their goals? How can you help them achieve those goals?

  2. Highlight your unique value proposition: What makes your business unique? What sets you apart from your competitors? Make sure your clients know what they are getting when they work with you.

  3. Provide excellent customer service: Your clients want to feel valued and appreciated. Make sure you are responsive to their needs and provide exceptional customer service at all times.

  4. Build strong relationships: People are more likely to stick with a business they have a strong relationship with. Take the time to get to know your clients and build trust with them.

  5. Continuously improve your offerings: Don't become complacent with your offerings. Continuously look for ways to improve and provide even more value to your clients.

In conclusion, while price is certainly a factor in attracting and retaining clients, it is not the most important factor. People who come to your business based solely on price are not loyal and will leave you when a cheaper alternative comes along. Instead, focus on providing value to your clients by understanding their needs and goals, highlighting your unique value proposition, providing excellent customer service, building strong relationships, and continuously improving your offerings. By doing so, you will attract and retain loyal clients who see the value in working with you.