All that glitters is not gold

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by Simon Morley on September 1, 2010

Seth Godin, master of the blogging universe, recently wrote an article about choosing your customers.

As usual, he’s thoughts are far more advanced than mine – I’m behind him again.

He’s right though:

You get to choose them, not the other way around. You choose them with your pricing, your content, your promotion, your outreach and your product line.

When you start a business, your first customers are your most important customers. As a result, you might drop the price or give them extra credit to get them on board. Please don’t.

Be confident that your prices are right and if you’re selling a service, make them sign a contract. If they’re legitimate, they won’t refuse.

By discounting, you’re reducing the value of your product or service.

For example, the psychological quality of a pairs of jeans is directly proportional to the amount you pay for them. Chances are if you compare a cheap pair with an expensive pair, you’ll find they were made on a similar machine in a similar factory in a similar country.

Your prices pretty much dicate the quality of your product. Whatever you’re selling, make sure it’s priced correctly. On most occasions, people don’t care about features or benefits – they care about cost. And if yours is the same price as everyone else’s – your product is the same too.

Set your prices at the right level to get the right customers. If you want cheap customers, offer a cheap service.

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