When running a small business, one of the most common complaints you may hear from customers is that your prices are too high. However, it's important to remember that this perception is often not due to your prices being too high, but rather other factors that make customers perceive your prices as too high.

In this blog post, we will explore some of the most common reasons customers may say your prices are too high and what you can do to address them.

Marketing to the wrong target audience

One of the most common reasons customers may say your prices are too high is that you're marketing to the wrong target audience. If you're not reaching the right people, they may not see the value in your products or services and, therefore, may not be willing to pay your prices.

To avoid this, it's important to clearly define your target audience and ensure that your marketing efforts are reaching them. Research your competitors and compare your target audience to theirs. By understanding who you're competing against, you can make strategic changes to your business that will help you stand out and justify your prices.

Failing to demonstrate enough value clearly

Another reason customers may say your prices are too high is that your marketing may not effectively communicate the value of your products or services. If customers don't see the value in your products or services, they may not be willing to pay your prices.

To avoid this, it's important to clearly communicate the value of your products or services in your marketing efforts. Use clear and concise language that highlights the benefits of your products or services. Additionally, consider offering a money-back guarantee or a free trial to help customers see the value in your products or services.

Asking customers to make a decision before they have all the information they need

Another reason customers may say your prices are too high is that they may not have all the information they need to make a decision. If you're not providing them with enough information about your products or services, they may not understand the value you're offering and may be hesitant to pay your prices.

Researching your competition

It's also possible that your branding or marketing promises are too similar to those of your lower-priced competitors. This can make it difficult for customers to justify paying more for your products or services. Additionally, you may be contacting customers at a time when they have limited cash flow, which can also make it difficult for them to justify paying your prices.

The dangers of lowering prices

It's important to note that lowering your prices is not always the best solution. This can lead to a dangerous race to the bottom, where you're constantly lowering your prices just to stay competitive. Instead, it's important to identify the root cause of customers perceiving your prices as too high and address that issue directly.

Identifying the problem and making a strategic change

One way to do this is by researching your competitors and comparing your products, marketing, payment terms, promises, guarantees, branding, and response times to theirs. By understanding what you're competing against, you can make strategic changes to your business that will help you stand out and justify your prices.