Have you ever wandered in to a garage, pulled in by the promise of getting a free service check for your car?
You walk in, sign yourself up to the free offer, and suddenly find that you have paid out more than you ever would in your usual garage, because the mechanics have found parts to fix on your car that you didn’t even know existed.
Or, have you printed off a voucher for a free coffee when you pop to a local restaurant, to discover at the end of the meal that the hidden service charge is actually worth eight large lattes in Starbucks?
These scams are everywhere.
There are so many firms offering deals which aren’t what they seem, it’s a wonder some of us have any disposable income left at all.
What seems like a great idea at the time, or a special offer, can often have a hidden sting in the tail when we come to settle our bill.
While these quiet scams are legal, they often serve to make people much more wary of accepting offers, because as consumers we are becoming tired of being ripped off.
The problem with this growing skepticism from consumers is that it makes it difficult to offer something for free.
There is a strange psychology around perceptions of value that we need to be aware of as business owners, to make sure that what we pitch to our customers, how we price our goods and services, and the way we do business isn’t actually deterring people from spending money with us.
Here are a few things I’ve learned since I started working for myself…
Value is a perception
If you buy a box of chocolates from a supermarket, have you ever stopped and thought through your purchasing process?
If a bag of chocolate is labeled up as ‘no frills’, ‘value’ or ‘basic’, we’ll tend to steer clear from it in favour of a box which is probably housing the exact same product, but in more appealing packaging.
This perception of value can be a huge asset when it comes to knowing where to pitch for business.
If we price ourselves too highly, we won’t get any customers.
Similarly, though, if our rate is too low we not only undermine our own talents, giving the impression that we are amateurs desperate for work, but we also risk bringing our industry down by devaluing it overall.
Choose a price which really reflects the hours you put in, and your experience, when you pitch to your clients.
Special offers are not always special
When we give something away for free, we are automatically declaring to the world that it is not worth their expenditure.
If you give away a free product (which is a great idea), make sure it is useful and of a high value.
Your free gift should be of a high value. That way some of your ‘free’ customers will convert into paying customers.
Be open and honest when you sell
So many people these days are getting stung through scams, that the instant a customer senses you are not telling the entire truth, or sniffs a catch in your services or offers, they will leave.
Because of this, absolute honesty is the only way to gain respect for your business.
If your prices are pretty high, explain why and demonstrate the return on investment you will bring.
If there are any costs which are not immediately apparent to your clients, be open about them before they sign you up and engage your services.
In a cynical, scam-ridden business environment, honesty goes a long way to prove to your customers that you can be trusted to deliver on time, to the price you quoted.
Therein lies the secret to a beautiful customer/service provider relationship!
What do you do to improve your perceptions of your on-line business?
Please share your views in the comments below.
I always appreciate when online stores have discounts or coupon codes.