Why Undercharging Isn’t Always a Bad ThingOct 13, 2020
(read time: 2 minutes, 31 seconds)
I know, girl, I know. For people like us, people trying to work in our purpose and build a business to be proud of, the word “undercharge” can be almost painful to hear—nails on a chalkboard. However, I sincerely believe that the strategy of undercharging (if implemented wisely) can boost our businesses like nothing else out there. I know it sounds backward; I can almost hear you shouting at me as you read this. “Undercharge!? On purpose!? What’s next, burning merchandise?! Giving advice to our fiercest competitors?” Hear me out, sis, if just for a couple of minutes. Maybe—just maybe—I can change your mind.
The Power of Our Brand
One of the major advantages we have in business is… well, us. It’s our individuality, sis! We’re not huge, faceless corporations churning out millions of identical trinkets or doodads to sell on a global scale. We’re people, creating things—whether they be services or products—that can help, inform or bring happiness to others. Customers appreciate that individuality; really, they do. By reinforcing that idea, we make customers feel good about supporting us and increase the likelihood that they’ll not only stay loyal, but spread the good word of our business to their friends and associates too!
Reinforcing Our Brand by Undercharging
What does this have to do with undercharging? Well, sis, undercharging is one of the most effective tools at our disposal for reinforcing that personal brand and reminding customers that we’re people, just like them.
Customers usually know when they’re being undercharged, and they’ll be quick to ask why. And the answer, from us, should be simple. We want to help people with our products and services; offering them at an affordable price makes them more widely available. Put simply; we want to do right by our customers, which is both true and exactly what customers like to hear!
Customers want to associate with businesses that treat them like friends, and by purposely undercharging, we’re doing exactly that! With that said, the message of WHY we’re undercharging must be right up there alongside the price itself. By pairing the price with the reasoning behind it, we’ll maximize the benefits of undercharging and succeed in forging a genuine connection with our customers, which—in itself—is beneficial for a number of reasons.
The Benefits of Reinforcing Our Brand
By building and reinforcing a strong brand, we stand to build up a strong base of loyal customers that promote our business to their friends, family, and colleagues with all the gusto of a paid employee. We’ve already demonstrated that we’ve got their best interests at heart after all, and they’ll be sure to remember that. Plus, in the future, when they need a service or product that we provide, you can be sure that we’re the ones they’ll come to before anyone else. It’s the power of undercharging, girl! Don’t discount it.
What do you think about the ‘undercharging’ method of building customer goodwill? Have you found success with another strategy? Let me know; I’d be interested to hear from you! [email protected]
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