When to Cut Your Prices

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You should periodically increase your prices in order to remain competitive and profitable.  And now that we’re in the middle of a recession you may be considering a reduction in your current fees.  However, don’t let that be the motivating factor.  While you should never be embarrassed by your prices, there are those rare instances when you should lower them.  In Paul and Sarah Edwards’ book Home-Based Business for Dummies, they provide 5 circumstances when lowering your prices just might save you in the end.

1. You’ve overpriced your services.

This can easily happen, especially when first starting your business.   We strongly recommend that you set firm prices upfront.  But everyone makes mistakes, and you can easily revisit your pricing list in order to set more reasonable fees if you find you’ve overpriced yourself.

2. Your expenses have decreased.

You can pass your savings on to your clients, if you would like.  Or you can see this windfall as your reward for cutting your own expenses.  Either choice can benefit your business.

3. You want to reward long-term clients.

There’s no doubt about it; this makes for good customer service.  You want to retain long-standing clients and offering them reduced fees for certain services may be one way to ensure that happens.

4. You want to get new work.

This is an age-old incentive in attracting new clients to your practice.  By offering a one-time discount you can build your client roster rather quickly.  Also consider offering your clients a similar discount for referring any of their friends and family to you.

5. You want to extend a professional courtesy.

Many professionals offer colleagues a special discount.  You might consider doing the same.  Perhaps you might do this for other home-based business owners.  While you may lose a little money upfront, consider all that you might gain in referrals later.

Cutting prices, when done for the right reasons, can be good business.  If you have considered reducing your fees as a result of the recession, think again.  There are better reasons for discounting your services as listed above.  When implemented properly you may find yourself with even more clients as a result.

UAC Provides You with Valuable Business Tips

If you’re interested in more business-building advice, you will greatly benefit from UAC’s video library which contains all the following DVDs:

If you are looking for ways to better promote your business, consider our DVD, “The Art and Science of Getting Clients.” You’ll learn how to access effective marketing techniques that can help you grow your tax practice by $30,000 to $125,000 per year!

But don’t stop there.  Consider learning about expanding your business by adding bookkeeping services to your menu.  Learn more about our Professional Bookkeeper Program and order our DVD “Introduction to the Professional Bookkeeper Program.”

And if you do that you’ll also want to know how to “Start Today and Have Your Own Bookkeeping Service”; this video will let you know how you can build your own accounting practice.

Finally, learn how to introduce your services to potential clients by using the “‘Yes’: Sample Marketing DVD.” Use this to role play, watch with clients or pass out to prospective clients.

If you order these DVDs the worst-case scenario is you will add valuable materials to your professional library for a very small cost.  But the best-case scenario is that you will change the course of your career and enjoy a lucrative business with an unending stream of clients who find your services to be priceless.  Don’t wait to boost your business potential.  Order our special DVD 4-pack today!

Resources

Edwards, Paul and Sarah.  Home-Bases Business for Dummies.  New Jersey: Wiley Publishing, 2005.

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