Why cutting your prices could be a catastrophe


If you’re thinking of cutting your prices to match your competitors, read this article by Mark Shields, The CAM Coach – you may be surprised.
This article was originally published in Holistic Therapist Magazine.
“So many practitioners have challenges with charging their clients, especially when they are just starting out.
I am glad to say nearly all of them move forward from this and realise the value they put on themselves is reflected in their charges and a lot of clients know this.
What client would want to work with a practitioner that charged middle-of-the road prices and came across as an average practitioner or therapist?
Clients associate ability with money. The more expensive you are, the better you are, and within reason, who doesn’t want the best? Your client most definitely will.
I have coached many practitioners over the years that approach me for help, as business is far from booming and they only have a few clients.
The first thing I always do is review their pricing structure, and normally increase their prices by at least 50%, sometimes more.
In every case they see an enormous, immediate improvement in client footfall. People want the best – don’t ever forget it.
Three years ago I worked with a struggling team of nutritional therapists based in Harley Street. They were on the verge of closing shop, as they were averaging, between six of them, just over £1500 per month.
The first thing I did was double their prices. The very next month I had a phone call from the Managing Director, telling me they had had their best ever month since they started trading some years before, and had grossed over £6000 for the month.
They were delighted. This change to their pricing structure had increased their business by 400%.
When I met them, they were seriously considering reducing their prices as they believed this was the reason why they weren’t getting enough clients.
I have seen this a number of times with different practitioners. Never reduce your prices. It is the beginning of the end if you do. Remember that.”
Mark is the author of best-selling book The CAM Coach – you can get a discount here.