What Motivates Clients To Purchase Your Services

Pricing your services can be one of the most challenging tasks for a small business owner. There are so many emotions that go into play with pricing and it can be quite a rollercoaster if you don’t understand the fundamentals of what motivates clients to purchase your services.

In my experience, what motivates clients comes down to 3 things:

  1. Price
  2. Perceived Value
  3. Client Experience

Once you understand which type of client values these 3 things, you can build your pricing and services around what will motivate and speak to the direct client you want to attract.

Can it really be that simple?

It absolutely can be. What makes pricing challenging is getting in our own way and thinking WE know what our clients want. Something to remember is that WE may not be our ideal client. Did you ever think of that? What motivates you to make a purchase may NOT be what motivates your ideal client. You have to think from their perspective and build your offerings around what they perceive as valuable.

The 3 types of clients: When learning about what motivates clients to purchase your services, there are 3 client types you want to be aware of; budget clients, value clients and luxury clients. Each one has their own motivations on what they expect from your services, how they perceive value and what they are willing to invest.

Budget Clients are motivated by one thing- your price. Quality and value mean are less important as long as your price is right. Budget clients are easy to identify because they will ask for your price front before considering what value you add or if you are a good fit for what they want. They often will try to negotiate your costs with little consideration of the quality of your work.

It’s important to say that a lot of times when we are first starting out, we mostly attract budget clients because our price points are low. Depending on the service, there is a threshold for how much a budget client is willing to spend and as you increase your prices, you may eventually price yourself out of a budget client’s range. Expecting budget clients to come back and use your services again once your prices are raised above their threshold is unrealistic and you will have to structure your pricing and packages to be better suited to attract value clients.

If you want to attract budget clients, consider all-inclusive type packages with simple delivery. Minimize your time by keeping the service short or combined with other offerings. Pricing should be low and only include a base service.

Value clients balance between a good price and excellent quality. They want a high perceived value but also feel like they got a good deal when purchasing their services. Value clients put importance on finding the right person that provides the quality they are looking for. Price is secondary (but still a high consideration) and they understand that higher quality comes with a higher price tag.

Depending on what service you offer, this is a great place to price yourself- even if you are just starting your business. It is much easier to start at a value client price point and raise your prices from there, then to start in the budget range. Remember budget clients have a threshold on what they are willing to pay, so as you raise prices, you will have to target a whole new client type as you move past a certain amount. A budget client will never become a luxury client and it’s much easier to make the transition to higher pricing with value clients as you establish your business and raise prices. Consider offering limited-time discounts when you start (emphasis on the word “limited”) while gaining the experience you need.

When building packages for value clients make sure you are showing a high perceived value. Consider bundled packages or discounted products when they meet a certain purchase amount. Services offered should have some customizations and exclusive offers that will show value clients they are valued.

Luxury clients are motivated by a high level of customer experience. They want a high-touch, exclusive experience that isn’t offered or available to just anyone. They want to feel special and are willing to pay a premium price for you to do things for them. They want options that are highly customizable and can cater to their needs. Price is of little consideration and is outweighed by service, quality, and convenience.

Working with high-end buyers is exciting, but your business has to be structured to support their desires. Luxury clients are high-touch, so if you are not equipped with the time or the employees to give them the experience they want, you will be left with a lot of unhappy clients. You also need a large variety of customizable options and exclusive benefits that you may not be equipped to provide them. Do your research and see what luxury clients want from your services and be prepared to up your game. 

To build packages for luxury clients, you need to offer services with hi-touch options that make your clients feel pampered and cared for. Your offerings need to be highly customizable to meet their needs with exclusive offers that aren’t available to everyone.  Services should be a full “done for you” experience.

Now that you understand what motivates clients to purchase your services, it’s time to make the decision on which type of client is ideal for you. Remember, the more money you charge the more time per client you will need to spend, so if you are running a side business or have other priorities, you may want to keep it simple.

Need help pricing and marketing your services? Contact us to day to see how we can help!

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