If you’re not worth anything than charge nothing.
Where will Zimbabwe be in 10 years? It will probably look completely different because of all the new ideas that will shape it.
Note on this post: There's a growing trend in Zimbabwe where many entrepreneurs are forced to close their businesses because they're competing on price and it's unsustainable. They have a great service, but charge too little for their target demographic. That's what we're addressing here.
There’s a place that charged $3 for a lunch of sadza, beef bones, spinach, vegetables, and gravy. I was so excited. It was my new lunch spot. But how long can that be sustained?
In a market that’s pressed like ours, it’s easy to want to cut the prices everywhere. Everything is negotiable—street vendors, plumbers, rent, and firewood. Even the street kids are being negotiated with.
This might shock you, but if you double your prices, then your clients will change.
With the new Zimbabwe supreme court law, you don’t want to be replaceable. There’s unseen value when it comes to your pricing.
I have handfuls of case studies of companies and entrepreneurs who have doubled their prices and seen their business skyrocket.
We did it directly in one of our companies recently and it made our team execute on a higher level which attracted brand new customers.
I have a good friend who’s a musician and he doubled his prices, then redoubled. His clientele changed, his experience changed, the way he carries himself changed. Now he plays the gigs he wants to play.
An animation studio we’re friends with doubled their prices, then redoubled them. They’re now the top company in the world for what they do and are probably going to need to double their prices again soon because they are in such high demand.
Doubling your price doesn’t work if you maintain the same level of execution. It does work if you are legit and you offer a legit product/service. Try upping your asking price. Not arbitrarily, but with pure value behind it.
When you position yourself as excellent and carry yourself as excellent, then your pricing must match that standard. Otherwise it’s a turn off to new customers.
If you change your mentality and double your prices, then your customers will change too.
Now, if you're selling to the dollar a day customer, then yes, you can't be flexible on price. But you can still be excellent and attract the very best dollar a day customers.
There are always options. And please don't compete on price. It brings everyone down at the same time.
(photo via mark fischer)
Posted on July 27, 2015
by Tim & Tommy filed under