Premium brands: ever been in a situation where you had to lower your prices?
Did your clients ever negotiate your prices?
Or maybe you feel you constantly need to keep your prices in check looking at what others in your industry are doing?
If so, you’ve probably also felt stuck and wondering how will you ever crush your income ceiling.
Am I right?
One of my clients, Caroline, is an expert in permanent eyebrows. Even though she’s really good at it, she struggles to make a living.
Because there are 10 other salons doing the same thing in her area and they are all lowering their prices to get clients.
They all charge less than £100 (around $150), which, if you’ve ever done permanent brows makeup, you know is crazy cheap.
Not only that, once they DO book clients, but they also find they are never happy with the service anyway and rarely come back to them.
Actually, Caroline said she thinks women in her town don’t really care for themselves that much and she should probably move somewhere else.
Meanwhile, in the SAME TOWN, there are a few salons who offer the same service for £360 and are fully booked for months in advance (we did the research with Caroline and she was shocked).
Obviously, this made my client even more frustrated because she realized there ARE clients who pay a premium for the service she offers. It’s just that those clients prefer to go to another salon, not hers.
They choose someone else. It hurts, especially when you KNOW your service is great.
She knows she’s just as good at her job as other makeup artists and is wondering WHY does she need to constantly lower her price while others charge a premium and have way more clients than she does.
Can you relate? Frustrating, isn’t it?
So, how do the other salons charge a premium when others need to keep lower their prices?
The #1 reason some salons charge a premium and are fully booked while others struggle to keep afloat is…
…those other salons sell the experience, not the service.
See, I’ve been saying this A LOT, I know, but:
you really need to stop selling your products (or services) and start selling the experience.
When you focus on selling the product, you’re selling a commodity. Something someone can always do better, cheaper, quicker or ______(fill in the blank).
When you sell the experience (the brand experience to be exact), you’re not only selling exactly what you offer but the way you deliver it too.
So the reason these salons charge a premium is that they never entered the lowering prices game. They didn’t have to (so shouldn’t you!).
They KNOW their clients and know how to speak to them.
They offer an experience their ideal clients are drawn to. And they focus on that very experience to keep loyal customers.
They are way ahead of any competition and can continue to grow because their clients don’t even question their price.
That is the power of brand positioning.
That is the power of selling an experience, rather than a product, or service.
Want to start on creating your brand experience and leave the pricing game (and competition) behind? Apply for consultation and let’s see what’s possible for you.