Many of us have been tempted to buy a “knock-off” because it is less expensive than the name brand. Generic products at the supermarket, “replicas” of status jewelry, pocket books and clothing and much more and, yes, the temptation is very real. I mean who doesn’t want to save 50% or more and get the very same thing, right?
Well actually, not right at all because if something costs 50% less it is rarely as good. It might be “good enough” or even “darn good” but most assuredly not as good as what costs more because what costs more is pricier for a reason:
- It costs more to manufacture
- It is made of better materials
- It has more cache (and maybe that’s important to you)
- It has a better guarantee
- It’s more reliable
What about you and the services you provide? How do you determine your pricing?
It’s a tough question and one that entrepreneurs continuously grapple with never wanting to charge too much and certainly, not too less. What if I lose the project because I charged too much? What if I charge too little and I lose money for every minute that I’m working?
Keep in mind that you don’t want to present yourself as a cheap knock-off of another company or undermine your self-worth in any way.
Providing value and charging a fair price is the way to success and making certain that your clients understand why you charge what you do and what goes into the price is paramount.
Don’t be a knock-off. You’ll find yourself losing money and confidence and undermining the success of your business in the long-term.