Alexa’s guest today is Mark Peacock, the founder and managing director of Price Maker, a company that helps businesses improve their pricing. If you are considering raising your prices, or have a new service to offer and want to know how to price it, Mark is the expert to ask.
- The standard seven-step methodology that Mark uses with clients looks at a company’s goals, customers, competitors, product offering, price, how the product is sold, and profitability.
- People are afraid to raise their prices for a number of reasons. Firstly, they don’t want to upset their customers. Secondly, they don’t know how their competitors will react, and thirdly, they don’t want to scare off potential new business.
- Start your pricing as high as you dare – you can always go down if you’re not attracting any business. Set a price that works for you before looking at what the competitors are doing.
- If you’re new to singing teaching, remember that your customers aren’t just paying for the qualification you’ve only had for a few months. They’re also paying for your experience. That includes everything you’ve done in the past, for example performing on stage.
- Don’t just stick to one price or hourly rate; offer your customers choice between different packages. Give them a price for ten hours and the price for one, with the ten hours being better value per hour. Give your customer the highest priced thing first, if you give them the lowest first then they become anchored at that price point.
‘The myth I want to dispel is that increasing your prices is a scary thing’
‘Be mindful of your competitors, but don’t get hung up about them’
‘Ask yourself how much your best customer is willing to pay’
Relevant Links & Mentions:
- BAST Blog – Putting a Price on It – The Art of Setting Your Fees.
- Pricing Scorecard Quiz: mark-kgztnm2l.scoreapp.com
ABOUT THE GUEST
Mark Peacock is passionate about helping businesses improve their pricing. Pricing is one of the most powerful levers any business can use to increase profits and drive revenue growth. Yet all too often businesses are scared to review their pricing meaning many business owners are leaving a lot of money on the table as a result.
Through his work at Price Maker, Mark has helped clients increase net profits by an average of 21% (which puts anything from £60K to £600K p.a. on the bottom line). Price Maker has advised hundreds of businesses using a unique process for designing a better pricing strategy.