Whether your product or service sells depends on one factor, value. Price is really just the monetization of value. For me to be willing to buy what you have to offer, the price has to align with the value I place on it.
Any real estate broker knows that the value of a home is based on what buyers are willing to pay for it, not how much the current owner loves their home, has invested in it, or even how much they originally paid for it.
As business owners, we get caught up in the blood, sweat, and tears we put into bringing our product to market. We allow our BS&T to drive the price. In reality, perceived value is what determines the right price. Before you make the leap to investing a lot of BS&T, find out if the market will reward you for doing so at the level you expect.
Here at Suite Spotte, we know that there are alternatives to the coworking we offer. Prospective members may choose to work at home because in their minds, it’s free. Or they may work at the local library or coffee shop for the price of a fancy coffee. Others may choose to use a coworking space. Those who choose one alternative over another weigh what each has to offer, the investment required, and decide if the return is worth it.
So why pay for coworking if you can work for free at home? Suite Spotte members tell us that the value of coworking exceeds the space we provide (although it’s pretty awesome). The value extends to the business owner members who become part of a collaborative community. The sharing, supporting, creativity, and connecting experienced at Suite Spotte is what differentiates coworking from office-sharing, the coffee shop, or the kitchen table; and therefore, equates to greater value.
How does your pricing compare to the value you offer? Step into your potential buyer’s shoes and take an honest look at the value you offer from their eyes. You’ll find that when you do, your customers will be more responsive to what you have to offer without squabbling about price.