How Can Service Providers Increase Their Sales Using Effective Pricing Strategies
Many professional services providers offer quality services, but only few manage to market them successfully. Too often, the problem is the way they structure the offer. Finding the most favorable formula to “package” these services is vital for market success. Subsequently, implementing a smart pricing strategy is also vital in order to sustain good sales.
Pricing for the right service doesn’t start with the amount described in the potential client offer or the one displayed on the company’s website. So, for a fair price strategy in this Internet age, it is not enough to ask the question: “What is the right price for my service?”
The first questions, actually, should be:
1. How to best package my expertise to meet market needs?
2. How to structure my offer to create maximum interest for my service?
3. How to initiate a relationship of trust with potential clients to sell at a fair price?
A good strategy starts from your first conversations via the Internet, between you as a contractor for your company, and your potential client. This approach leads to more sales than the classical approach.
Three Steps for an Effective Pricing Strategy
1. Show the value of your services before asking potentials clients to pay you
How can you create maximum interest for your services? Give something for free. You read correctly! A fair price for the first piece of professional advice you give to your potential client is ZERO $. This does not mean that a trainer will deliver his course for free or that a consultant will always provide the initial session pro bono. It simply means that you will find a way to create value for potential customers without asking for a fee (yet).
A management trainer, for example, can teach his potential clients through a blog post or a short video posted on YouTube how to design the company’s organizational chart. This “free service” will attract the attention of HR, which is precisely the group of people who have the decision-making power when it comes to purchasing training services.
2.Create interest for your services through informational products
The second “price” proposed to your potential client is a small fee. The suggested retail price for this type of sale is a maximum of $7. The trainer can develop a guide explaining step-by-step how a company can create a chart for a performance management system. This informational product is a simple PDF guide. To create it, the company only repackages its expertise, i.e. the content delivered during the regular performance management training. The guide will be sold at a token price, so there are no unnecessary impediments to purchase.
Selling the Informational Product Has Many Benefits:
-Initiate a buying relationship between your company and potential clients;
-Anchor a future achievement for the service at a fair price (Performance Management course in the chosen example)
-The client’s purchase decisionis influenced in your favor on the basis of pre-existing relationships
-It is a source of passive income that will fuel your marketing budget
3. Capitalize the Long-Term Relationship with a Satisfied Customer
After your initial delivery , in the moment of maximum customer satisfaction, you could give the client another offer for similar or complementary services.
Training consultants can use the feedback from the training report forms and use that favorable feedback to approach other managers in the same company.
For example, if the company provides executive coaching, this complementary service can be offered to several key managers of the company immediately after submitting the training report.
You better sell your expertise rather then selling your time
Service providers who present their offer this way have a major advantage. For example, a training company that creates informational products can generate a constant passive revenue stream. Once you learn how to create successful info products you can realize even more: online courses, webinars, e-books etc. The major advantage of these products is that, unlike the company’s primary services, they are not limited to the physical time trainers have for delivery.