- If you are not pricing competitively, you’re doing a disservice to your business by not bringing in enough revenue to support the business.
2. You are doing a disservice to the client if you undercharge for your services. If you continue to undercharge, it will prove to be a challenge to service your client and meet expectations.
3. Revenue growth will be a challenge from that client to a new level at which you are bringing new clients. With this process, you are creating a pipeline of legacy clients that you may outgrow.
4. Not pricing accordingly can put your company in an unfair and underpaid position, and the client’s expectations won’t match the compensation you receive.
5. You are secretly known as too cheap. You gain jobs, and you think you are outperforming the market, but you are getting jobs because your company is a cheap option. Notice I said cheap and not less expensive.
For those that are stuck on reason 5, chances are you, and the client will not have a long relationship. During the relationship, you may have felt that you do too much work in comparison to the compensation you receive.
About the author Eric Elliott, In 2018, his advertising agency, VIP Marketing, and Advertising received notoriety as one of the top 400 branding agencies in the United States by Clutch. When Eric is not working on an ad campaign or creating the next advertising masterpiece for his clients, he spends time with his wife and children; he commits to constant learning from marketing conferences. He is currently focusing his energy towards his podcast, The AdCast, and publishing a self-help memoir. You can reach him at Eric@heyimeric.com or various social media sites like Facebook, Instagram, Linkedin, Snapchat.
