Technology Marketing Minute

The Secret To Charging
(And Getting) Premium Prices

By Robin Robins, President, Technology Marketing Toolkit, Inc.
www.technologymarketingtoolkit.com

Are you getting paid what you’re worth? If not, why?

One of the biggest reasons computer consultants don’t raise their rates and charge premium prices, is their erroneous fear that doing so will cause them to lose clients and reduce the number of people who will buy from them in a competitive situation. Nothing could be further from the truth. In every industry, there are companies that charge premium prices for their goods and services, and I have had a number of clients raise their rates 10%, 20%, even 40% and never lose a client. If you aren’t good with math, that’s an instant boost to bottom-line profits at zero cost or effort. In every case, if any clients were lost, they were the bottom feeders we wanted to lose anyway – an added bonus.

From my perspective, there are two big detriments to charging what you are worth and commanding premium fees: 1. Your lack of effectively marketing the value of your services, and 2. Your own negative attitude and beliefs about money and what you are worth.

First, let’s look at the marketing part of this equation. If you want to successfully secure higher than average fees for your services, you will have to structure everything you do in your marketing and client communications – including your web site, advertising, Yellow Pages, direct mail, and client presentations – to position yourself above every other computer consultant in your area.

The only reason a client chooses a cheaper competitor is because they have not been convinced that the additional money you are asking for is justified in value. In other words, your marketing and presentation has not sufficiently differentiated you and positioned you as the clear choice. Most computer consultants and sales people “wing” their client presentations. Most give the price first and then justify the quote instead of carefully and systematically building value and increasing the client’s want of the service before giving the price. Do you have a process to do this? Can you articulate the steps involved, point by point? Do you have a well-thought out presentation that builds value, handles objections, and provides unquestionable proof in testimonials and guarantees that you can deliver on your promises better than your competition? If you don’t, you’ll have a very hard time selling your services at premium prices.

Then there is the issue of your own negative belief systems about what you are worth, asking for money, and charging premium rates. Most computer consultants squirm when they give a price to their clients. Not only do they feel uncomfortable giving the price, but also when asking the client to buy. You’ll never charge premium rates with these beliefs.

Many feel it is somehow “unfair” to charge more than everyone else. I don’t know where that comes from, but again, if you feel that way, you are going to have to learn to be content with earning less than you could. Who gives Ferrari the right to charge hundreds of thousands of dollars for a car? Who gives Rolex the right to charge thousands of dollars for a watch? What gives Trump the right to sell and rent his properties at rates that are well above the “norm?” In all cases, the affluent clients they appeal to give them the right every time they stand in line to buy. No one is holding a gun to their head forcing them to buy a Rolex or a Ferrari, and they certainly aren’t the only options for time keeping and transportation.

If you have negative beliefs about what is and isn’t fair when it comes to charging premium prices, no one is going to hand them over to you. You get premium prices by asking for them with 100% congruency and confidence, and darn good marketing to back it up.