Copy-Cat-Copywriting

Last week we suggested why new businesses might - or
might not -be advised to set fees below market to
attract new clients. See

This week we'll focus on the message we're hearing
more and more: "Want to be more successful? Raise your
prices."

A speaker told me, "My coach said I should double the
amount I usually ask and then add five thousand
dollars more."

Maybe. But some business owners got big by keeping
prices small, not just when they begin, but forever.
If you choose this route:

(1) Skip the explanations to your clients.

One consultant addresses the question right on her
website: "I charge less than many consultants at my
level because I want to reach more people and help
them..."

As Tony Soprano would say, Fugeddaboutit ("Forget
about it," New Jersey style.) My credibility warning
light starts to flash and I hear the fudgebuster alarm
going off loud and clear.

When I see an experienced consultant pricing below
market, I figure, "They don't have the market power to
charge more."

They may be superb consultants. They may even be
skilled marketers. But they've taken themselves out of
the running for reasons that may reflect real business
savvy. For example: They don't want the work, hassle
and attention to detail required to create a four-
figure product- so they have a shelf of small ebooks.
Or they know their particular market won't pay more
than a certain amount for information products, no
matter what - but the market is so huge they can still
do well.

One designer does high-quality work at rock bottom
prices. She can't charge more because her family
pressures often interfere with deadlines. She's very
talented so some clients pay extra to go to the head
of her queue, but if she tripled prices, nobody would
come.

If an experienced coach or consultant charges, low
prices for hourly consulting, I'd move carefully
before hiring him or her. But frankly I'd be even more
careful when hiring a high-priced big name
consultant.

Perry Marshall (the Google Adwords expert) recently
addressed the question: "Why do so many high-priced
pseudo-gurus stay in business?"

His answer: Their clients pay for services but don't
get to the implementation phase, so they don't realize
the guru's system just doesn't work.

(2) Skip explanations to well-intended colleagues.

Once at a conference I fell into conversation with a
total stranger who knew nothing about me or my target
market. She was horrified at my "low" ebook prices. I
started to explain that I knew my market, then
realized I was wasting time.

Now I say, "I've run the numbers and done the price-
testing. This business model is the most profitable
for me, given my products, services and market. I am
always happy to discuss my approach with my *paying*
clients."

(3) Test, track and test some more.

Your well-meaning colleagues and coaches may be
right. Maybe your fees are too low. But you need more
than a 2-minute business review to come to that
conclusion.