If any of you have been following me online or ever attended my live workshops and the sessions I’ve given, you will know already that I am a very big fan of value-based pricing, of increasing the perceived value of products and services. I want to talk today about how people make purchasing decisions. They make them decisions to purchase when value stays above price, as long as value stays above price. So people who buy from you once and don’t buy again is when the value dips below the price. That is a point of cancellation. If you if you visualize a graph of price and value, there will come a point when the value dips below price that is the point of cancellation. Most mediocre businesses whether we’re talking about translation or any other business are below that point. And what happens is they have to continually find new customers, there’s a constant rotation of new customers coming in. Because they only make one sale per customer. Repeat business needs to be exceptional. It needs to be remarkable. It needs to be the Purple Cow that Seth Godin talks about in his book, The Purple Cow. A Purple Cow is remarkable, a brown cow is not remarkable. You have to be so good that people talk about you all the time, when existing products are not that good. That is when value dips below price. And that is when purchasing decisions become work against us.
So there are two ways essentially to improve the price to value discrepancy. One is the hard way. And the second way is the easy way. The hard way is to lower price. And the reason this is hard is that you can only go as far as zero, and you cannot go no lower than zero. You can’t charge a negative price. That would be equating to paying the customer to buy from us. So clearly, that’s a non-starter and we’re not going to do that. Lowering the price is a one way ticket to failure to disaster. And to not being successful. The easy way is of course to increase the perceived value to customers and the prospects you’re trying to convert into paying customers. And the way to do this is to niche down it’s to pick a specialization and market yourself, position yourself as the thought leader in that particular specialization or niche, position your offer of services to book out. And the reason this is easy way is that you can go infinitely high this way. There is no limit as to how far you can go. Whereas if you’re lowering price, the limit is zero. So the goal when we do this is purely to sell euros at a discount. Or dollars, whatever currency we’re working in, at a discount and giving the prospective customer the very best return on their spend with you per euro or per dollar, whatever currency we’re talking about.