It’s not easy to make your clients pay more for your services. Companies would rather save money than pay more. However, when you have developed the right formula, you can ask for more and they will be obliged to pay for it.
Many firms market their services for a lesser amount than they are worth, but when they try to increase their prices they encounter stiff resistance from their clients, maybe even lose some of them. One way to do this without significant damage to your firm is to mark your services as premium from the start. It will then be easy to mark your products down rather than mark them up, once a specific price point has been identified.
Here are a few tips to help you bill your services better.
Become a Premium Service Provider
You must identify features that are high-end in your line of work. Later, highlight them in your marketing activities. While there may be a strong urge to offer a basic level of service, you have to resist it. To keep your premium price tag, you’ll have to stick to the premium service level. Add extra value to your premium service by using the latest software that provides automated billing so your clients always receive their bills on time.
Define Value
Always be clear when it comes to your service’s value. Help your clients understand why you priced your services higher by explaining it to them. If your competitors are offering similar services for a lower cost and you know that the low cost also translates into poor quality services, explain the difference to your clients. To put it simply, do not be apologetic about your price, explain the value to your clients, and if needed demonstrate how it can lead to a higher ROI.
Take Your Service a Notch Higher
Many firms make the mistake of saying their services are better simply because their staff is friendlier. Friendly employees are not the only factor that a successful firm needs. Successful firms have employees who are well aware of customer needs, so much so that they can expect them.
Do Not Sacrifice Price, Even During Tough Times
Explain to your clients how they will benefit from investing in your services. You can be a little flexible with long-term loyal clients. Note down all the clients you can be flexible with and communicate the list to the sales team so that they’re not forced to deliver snap decisions. You can give your employees some freedom when dealing with clients but ensure that they are aware of which clients deserve special treatment.
Do Not Enter into a Price War
Weak competitors will quickly cut prices to get business. But you do not have to play the game. It is important to note that many businesses fail because their low-price strategy becomes unsustainable. Another disadvantage is that your service will quickly become a commodity. There are many examples of firms that have carved out distinct markets for themselves because they would not get into the trap of reducing their prices. But to do this you have to create and later sustain the service that justifies your premium price.
Project That You Are Financially Stable
Consider this example. You have repairs needed to the exterior of your home. Say you need to repair your deck. You ask two local companies for bids. One is a newly established entrepreneur who quotes $4500 while the other is a 20 year old firm that quotes $5000. Both offer 10 year extended warranties. When you call up the new entrepreneur to speak about his quote, he tells you that he will not be able to give your home an initial examination soon because his van is in the garage for repairs. You start to worry whether the new entrepreneur will be good for the 10 year extended warranty. Finally, you decide to go with the older established business. The newly set-up entrepreneur would have probably won your business, if he had only projected some more stability.
Firms will naturally focus on their competitor’s weaknesses to earn more business. However, to improve the value of your company, you need to focus less on what the competitor has done or not done and more on delivering premium value to your clients.
Billing Software Made Easy with BQE CORE
Now that you’re ready to start billing your services better, you want to make sure that you’re also making billing as easy as possible for your firm. BQE CORE’s billing software provides simple, yet dynamic, time, expense, and billing in a single solution. Never miss a payment with automated billing and ensure invoices are prepared, reviewed and received by your client on time- every time. Features also include customizable invoice templates, split billing, email invoices with ePayment, and more.
Try a free demo today to see how much easier billing can be for your firm.
