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4 reasons why having a more expensive service is a great marketing play

  • TommyCarey Level X3
    • 12

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    4 reasons why having a more expensive service is a great marketing play

    When we start our online ventures, we think that we will make millions right away.  This never usually happens because most people lack the skill and knowledge to do so.  If you're just starting off, you probably don't know the value of increasing your prices and you think "If I increase my prices I will just lose sales and turn people away!" which is true, but not always a bad thing lol 4 reasons why having a more expensive service is a great marketing play

    When I started out I offered a $5, $10, $25 and a $50 service on my website which was selling pretty well.  What I wasn't expecting was that so many people would be unhappy with their SEO results because they thought "If I'm paying for SEO, I should be ranked #1!!!" and we all know that's not the case.  I then decided to do a side project and offer premium services where my absolute lowest package was $500 and it mainly consisted of content generation.  I didn't really have a maximum because I could increase the variables within every package I offered, but my average package was around $3,000 to $5,000 per month. 

    After a few months of running a PR campaign and reputation management campaign for my bigger ticket SEO and Marketing services, I started to get contacted by big businesses.  When I say "Big" I mean these companies were making millions a year and their monthly SEO and Marketing budget was pretty high 4 reasons why having a more expensive service is a great marketing play  I got to talking with a few of them, on the phone and email, and after a few engagements I would sign a few of them up.  Now I didn't sign them all up, like I had hoped, but the ones I did sign up were paying a premium and that was enough for me to make more than a full time income as well as pay people to help with all the work that was needing to be done for the new client 4 reasons why having a more expensive service is a great marketing play

    You can definitely work with the smaller fish and charge under $100 a month for your services, but you'll just increase the amount of work you have to do and that means the amount of headaches you have increases.  Right now I have 6 big clients and a writing service here on SEOclerks that I just started.  I of course have other websites that I'm building up, but that's not part of this discussion lol.  With these 6 clients I have to only talk to 6 people, not 100 or 1,000 small clients that I have to speak with.  After a few months the clients didn't even call me anymore and all I had to do was send them reports and call them once a month to give them an update.  I built my trust with them so much that they didn't mind letting go of the reigns and sending over a check each month lol 4 reasons why having a more expensive service is a great marketing play

    Now then, why did I talk about all of that in the beginning and not get right to it?  Well if I showed you that it worked, you would be more willing to see why it worked 4 reasons why having a more expensive service is a great marketing play


    1. The higher the price, the higher quality the client will be
    When it comes to pricing your services, don't worry about who you will be turning away.  If you can put together a service that would cost you $500 to $1,000 and a decent amount of your own time each month, price it at $3,000 to $5,000. 

    People or businesses who can pay a premium won't just sign up right away, they will give you a call or contact you via email to see if they can set up a call with you.  This usually means you have a bigger than normal fish on the line and you just need to start reeling them in lol.

    The higher your price, the higher quality your client will be.  This is because you're going to be weeding out the smaller fish who will knit pick every little thing you're doing with the service because they have the time to do so.  If you have a big fish signed up, they will just want to see results, and that means increased rankings and sales if you're selling SEO services like I was 4 reasons why having a more expensive service is a great marketing play


    2. Clients will value, trust and respect you more
    Larger clients will always value, trust and respect you more because they've been in business for a while and don't mind parting with a small fraction of their profits each month unlike the small companies who would be parting with a much larger fraction and eagerly waiting for the sales to roll in.

    Over a few months of working with the bigger clients you will notice they start to let their guards down.  This is because you're starting to show results and they know you're not just some fly by night service that was set up in order to target them (even if that's what you were doing lol).


    3. Your clients will get a better service
    When I started out, I had thousands of clients every year coming to me for work.  I was extremely overworked even though I had a partner helping out, and I needed to get something else going so I could have at least a little free time.  After I launched my higher ticketed service I realized that I was able to invest more time in my clients projects since I only had a few and not 100 at the same time.

    My clients were getting a better service since I was able to invest the time, and I was making much more money lol.  Basically I cut out a ton of one time buyers and replaced them with 3 to 6 dedicated clients.  I was able to get people to focus on certain aspects of the campaigns instead of helping me work on the thousands of campaigns every year. 

    I was happier and less stressed well as my freelancers/employees and my clients were too!  We were able to get more laser focused on the campaigns since we only had a few, not hundreds 4 reasons why having a more expensive service is a great marketing play


    4. You will have better support than people charging less than you
    When it comes to a major selling point, and how you will keep the clients happy, you need a good support system.  If you're talking to 100 people a day, you will start to get burned out fairly quick and your work will start to be less than quality.

    If you only have a few big ticket clients, you only have to talk to a few people.  You won't have to talk to their CEO, VP, CFO, assistants, secretaries, etc. from the companies.  You will have one contact at the company, maybe two, and that's it.  You will usually talk with the person who set everything up and sometimes the CEO.  So if you have 10 big ticket clients and 2 contacts for each one, you will only have to talk to 20 people a month and not 100 every day! 

    Clients who can get a hold of you easily within your daily business hours are much happier than the ones who try to get a hold of you but get stuck talking with a digital secretary or your voicemail because you're already on the phone with another client.

    People charging much less than you will usually have more clients, but they will also be working more hours every day and also not talking to every single client they have.  Sure, they will send a report and a "thank you!" but that's about it.  I talk to my clients for at least an hour every time they call me or I call them.  That sounds like a lot, but it's really only 6 to 12 hours a month that I'm on the phone with them.  And that's only for new clients, for the ones who I've had for 6+ months I rarely talk to because they don't have any more questions lol 4 reasons why having a more expensive service is a great marketing play




    In Conclusion:
    Charging a higher amount for your services will drastically reduce the amount of sales you get each month, but that's ok.  You will instead be getting higher ticket clients who will make you less stressed since they don't expect over night results and will call you every day for updates lol.  By charging a higher amount for my services I actually reduced my work load and increased my profits as well as have much happier clients month to month 4 reasons why having a more expensive service is a great marketing play



    Remember to follow me!
    https://www.seoclerks.com/user/Razzy


    Thanks!

    Razzy

    #Seoservices SEO
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    wiseagent

    wiseagent

    Those tips only make clear something that everyone should realize once and for all: financial investment (too much or too little, depending on your business) is an extremely important tool. There is no way to grow (not considerably) without this type of investment.
    7 years ago

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    Tronia

    Tronia

    I do agree with you but I also feel like the general price of your service should always take into consideration the overall market. If you are offering something that many people are and you aren't extremely experienced nor do you have any good reference it isn't too wise to set your price too high. It is better to start lower and increase over time as you become more established.
    7 years ago

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    Corzhens

    Corzhens

    That pricing your service or product that is outrageously expensive is like suicide when the marketplace is teeming with competition. Sometimes there are products that are more expensive than the ordinary products but they have the reason for the higher price because the brand they carry has a good reputation and trusted by the public. For online marketing, you may be pricing yourself out of the competition.
    5 years ago

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    overcast

    overcast

    Based on what I have seen from people on Envato and the Fiverr. The 5$ service definitely helps in many ways. You can see that cost of the projects on the marketplace needs to be higher than 10$ these days. Because we are having higher cost of living. And people don't seem to be changing things along the way. It's possible to make millions even with 5$ services but it does make you a bit hard on the effort side.

    People have to learn how to do that through their own settings. Some may be happy with low cost services and may end up earning a lot in due time. But at some point in the life it's better to go our own way and raise the rates. That's how most of us seems to learn from doing the freelancing online.
    7 years ago

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    Barida

    Barida

    This is just the truth considering that I have met lots of clients, while I was starting out, that never believed that I could handle their work with the price I asked them to pay. I'm glad you backed their actions up with this. I increased my price and things got better.
    7 years ago

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    kgord

    kgord

    I think in doing this you have to make sure you have the skillset to give the big businesses what they are looking for. I think you might want to start off with some smaller fish first just to make sure you know what you are doing prior to signing up a major client. It just makes sense to do so.
    7 years ago

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    Krisleen

    Krisleen

    It's true that a more expensive service can sometimes be a great strategy. Some clients are not really particular with prices. Quality clients prefer better services. I can relate to your post, especially when you said that you will have a better support than people charging you less. i have witnessed that many times here. I live in a country where people are very particular with prices and they end up getting frustrated for not getting what they pay for in low price products or services. I clearly remember what the speaker said in one of the seminars I have attended. He said you cannot sell something of high quality and value for a low price, like bazaar price. It's true. You cannot compete with low prices all the time. You can consider making your products or services unique and of high quality that will make clients feel that they are paying for something worth their money.
    7 years ago

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    DenisP

    DenisP

    You know it wouldn't seem that way at first, but this definitely makes a lot of sense. Anyone with even the slightest amount of experience in business knows that you typically aren't going to get a quality product for all that cheap. You can even see that with regular items and goods. There is a reason why a Rolex costs hundreds, if not thousands, of dollars more than a regular old watch you'd get at the mall. It is because it is a high quality product that is going to last long and be extremely reliable. The same goes for services. A cheap service is like a cheap watch, it might do the job decently but if you're expecting exceptional performance then you're going to have to expect to pay more as well.
    7 years ago

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    augusta

    augusta

    I can totally relate if one price is high of course such a service would be for the wealthy and only the wealthy would contact one.And because of the money involved, of course, it pertinent that the job offered will be of high quality and one will make more money and also gain respect.
    7 years ago

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    jpyy

    jpyy

    This is a good idea, but in actuality, a lot of businesses simply cannot provide top of the line stuff. In that case, it would be ludicrous to think they should charge a lot. However, though, if you truly have a state of the art biz, then perhaps you should charge at a regular or above average level while saving the big discounts for sales. I mean, we have forgotten sales here. A sale would be a good idea because it can cause the buyer to act or at least, act more quickly.
    7 years ago

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    Judas2018

    Judas2018

    I think pricing is something all freelancers struggle with. How much to charge without appearing greedy or bloodthirsty. I think you should take into account how much work you do for a particular job, then use that as your pricing base or jumping off point. Don't just price high because you see dollar signs, but really take into account the time and effort - blood sweat and tears poured into a project. Including travel expenses (if any apply), brain work, etc. All in all, you should also check out the market itself to see what others are charging for services similar to yours.
    7 years ago

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    Corzhens

    Corzhens

    This reminds me of the business logic of Ralph Lauren, the maker of Polo products. In an interview by Time Magazine a long time ago, Lauren admitted that his products are somewhat overpriced and some are even exorbitant. But that kind of pricing for his products is intentional. When the price is high, it exudes elegance and class regardless of the quality. And although he may not be serious with that comment, I guess it has a sense in it. When the price is expensive, you tend to attract rich customers.
    6 years ago

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