Knowing your worth can mean walking away from price-sensitive customers.
Hi y’all,
Welcome back to Busy Season, your guide to the hot takes, pro tips, and real stories sweeping the events industry.
This week, I want to talk about something I’ve been hearing about a lot lately: customer price sensitivity. How do you deal with it? How do you present your value clearly? How do you know when to walk away?
You know how the saying goes: “You can have it fast, you can have it good, you can have it cheap: pick two.”
And it’s true for price-sensitive customers.
If your business caters to clients who want the cheapest option, something else has to give. Either it takes more time to get the job done, or the quality suffers. On the flip side, if a client wants something both good and cheap, it won’t be quick.
Now, every industry has companies that cater to the budget-conscious, and it’s totally fine if you’re one of them! But if that’s not your lane, be confident in the value you provide.
I’m not a fan of discounts because they often undervalue the true cost of doing business. Instead, think about pricing in a way that reflects both the cost of running your company and the lifestyle you want as a business owner.
For example, if your revenue goal is $1,000,000 a year, you have options. You could do 1,000 events at $1,000 each or 100 events at $10,000 each. Which would you prefer?
“In the age of information, honesty and openness about your pricing are no longer optional — they’re a necessity.”
Todd Caponi, The Transparency Sale
Here’s an exercise before discounting: Assume that the discount client shows their price to 5 of their friends. Would you be excited, knowing they’re potentially referring more business? Or would you dread explaining to these new referrals that the original client got a special price?
If it’s the latter, discounting may not be the best strategy for you. Pricing transparency is good for business.
As one of my favorite sales books, The Transparency Sale, puts it: “In the age of information, honesty and openness about your pricing are no longer optional — they’re a necessity.”
The bottom line: know your worth, and don’t be afraid to charge accordingly. There’s no need to race to the bottom. Clients who understand and appreciate the value of great service are out there, and they’re willing to pay for quality and reliability.
Stick to your strengths and let your pricing reflect the premium experience you provide. 🌟
See you next Tuesday,
Mallory Mullen
Goodshuffle
