Your Status As a Solopreneur Warrants a Premium Price
As an army of one, you offer unrivaled attention, care, craftsmanship, and countless other benefits. Fact: Nobody you hire will care more than you do. This alone carries a huge premium.
The price you pay as a solopreneur is that (in most cases) you can’t serve people at scale. For example, you can only make 200-300 calls a day, versus an organization with an entire sales department, who can churn out 20,000 calls a day without breaking a sweat. You can only create so many websites, build so much furniture, or serve so many clients... before you hit a ceiling.
Three Big Reasons We Fall Into This Trap
- You don’t believe in your product.
- You don’t understand the premium value of your own time.
- You don’t realize the price is arbitrary. (You can charge whatever you want.)
Premium Pricing Instantly Makes Your Product or Service More Valuable to the Consumer
Marketers have known this a long time. I was recently introduced to a study at Stanford where the same brand of wine was marked up at two different price points. Drinkers reported that the more expensive wine tasted better. Great marketers didn’t need this study to confirm what they’ve known forever: perception is reality. Higher price = higher perceived value.
Price Competition is a Race to the Bottom
Unless you’re Amazon or AliExpress, you’re never going to win on price. Discounts and promotions are very powerful tools, but The Cheapest And The Best™ is a myth – people buy the product they’re convinced will solve their problem. Period.
Competing on price is a mind virus that has infected our economy. You will discount yourself into the ground. When you undercharge you have no margins. No margins? No employees. No growth. No reinvestment. No improvements – all of which leads to (you guessed it) even lower prices.
It’s a death spiral. A race to the bottom.
Want to grow your business? Charge more.
Want to hire employees? Charge more.
Want to innovate? Charge more.
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