During this episode we'll be taking a look at both the advantages and disadvantages of Competitive Pricing and why it's best to use a blended pricing strategy for your coaching business. In escence; why you shouldn’t base your prices on competitors and what you should do instead.
In every industry you can add up the entire turnover generated by that industry and work out what percentage of your peers contribute to what level of value.
So, to make the numbers easier, £100 of value created by 100 coaches:
- £60 is generated by just 10 coaches
- £30 is generated by 30 coaches
- Just £10 is generated by 10 coaches
Other things I'll be discussing:
- Sales Cycle of doom
- Discounts we’re just not calling it a discount
- Copying a terrible business model
- As it's often based on hourly rates
- The competitive intelligence you’ll gather will reveal competitor strategies, which will help you make better decisions in the long term.
- Make sure you implement a dynamic pricing strategy where you are testing numerous price points to maximise profits without losing your competitive strength.
- Competing solely on price might grant you a competitive edge for a while, but you must also compete on quality and work on adding value to customers if you want long term success.
- If you base your prices solely on competitors, you might risk selling at a loss. Instead, combine several strategies in line with your business objectives.
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