Your flexible pricing may be killing your business. Here’s how.
As a small business owner & entrepreneur, it’s always tempting to have many products or service offerings and be flexible with pricing in efforts to capture every customer you can. The reality is that by doing so, you are also making your money “too flexible”, and in return it can become really difficult to make consistent revenue.
Basically you’re bending your own rules and parameters of your services to ensure that you get more clients, which in essence, is killing your predictable profit.
The Fix? FIXED Offerings.
Delivery consistency (the ability to duplicate the same service over and over) is always a MAJOR key to keeping and getting more business. By you running the same play over and over you not only iron out the kinks and wow your customers/clients, you leave yourself room to improver the service because you free up more time to work ON it, not IN it. Not creating a consistent revenue model stifled my progression for many, man, years and was one of the hardest lessons I have had to learn as a business owner.
Price Flexibility vs Service Flexibility
Here’s the thing — don’t not confuse flexible pricing for flexible service. For example if you have a design agency and your client needs web design services….feel free to also add on/offer them graphics design, or social media marketing services if you’ve already got a package for it, and you know it can be of value to them. That’s flexible service. But, where most of us get jammed up is that instead of being flexible with our services, we’re flexible with our pricing. They key with this — decide what is and what isn’t flexible within your service offering, before you even start offering additional products.
If you want to get your business to grow profitably and consistently, you need to come up with specific product details and offerings that are constant, and then stick to it. Customization and flexibility can only be allowed for top dollar clients who are willing to pay three to ten times as much as a regular client which, to be honest, is an anomaly situation.
The only way to do big business is to act like a big business. Big companies always offer their products as they are and only an extreme amount of money can get them to customize the user experience. 90% of their products offer the same experience to all their users and can’t be changed or customized. Therefore, if you want to scale up your business easily, focus on doing something that’s duplicatable and remain consistent. Once you do that, crank up the marketing and watch your business grow!