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Are You Attracting Cheap
Clients.
By Stuart Ayling
Consider this real-life example.
A dog day-care business offers a special half-price offer for the first day trip. Clients love the service… and so do the dogs! Unfortunately the business owners have trouble convincing these first-time clients to re-book (and pay double the rate they did the first time). Clients offer many reasons why they don’t re-book, but they rarely do.
Why do you think that is?
Promoting cut-price specials attracts
cut-price clients.
This is especially the case for service-based businesses.
Here’s another one. See the flyer below promoting “Professional and friendly accounting and business advice at affordable prices”.
What do you think the problem will be for this firm?
Hint: They are trying to attract price-conscious people (cheap clients).
It’s not all bad. This firm offers special events on specific topics – very valuable for their clients. They also promote a network amongst clients – very thoughtful.
But then we look at all the price-focused offers.
[keep reading below the image...]
There are:
- Discount offers from network members.
- Entry to win a $100 Coles-Myer voucher.
- and… they also offer an extra 12.5% discount off their already low fees.
Why do they offer the extra discount off already low fees?
What message is that giving potential clients?
I’ll tell you. The message implies their standard fees are be too high (that’s why they offer the extra 12.5% discount). The message also says they aren’t sure about the value they offer for clients (otherwise they would stick to their standard fee).
They also miss a trick because they have fallen prey to taking the easy way out.
Discounting is a lazy way to promote your business. Plus it costs you real dollars every time.
A better solution would be to offer something extra that potential clients would find valuable. That’s right… something extra. Add value.
Don’t take away from your price...
add something valuable that doesn’t cost you full-value.
Example:
“Every new client that joins us this month will receive a free assessment of their record keeping procedures and recommendations to save you time and money in the future (valued at over $150). We’ve found that businesses can easily save hundreds of dollars
in future fees by implementing these easy procedures.”
The idea here is to offer something at full ‘retail’ value that doesn’t cost you that much to provide. In this example the cost of providing the assessment is only the hourly rate of the staff member involved. You can minimise your outlay by creating simple systems for staff to use.
Plus, this offer will attract business owners who are keen to improve their business, not just ones who focus on getting the cheapest price.
What do you think?
Are you attracting cheap clients?
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