Something you probably didn’t know about me… for 15 years I helped my husband run a multi award-winning wedding entertainment company.
We were firmly in the high-end space. Thousands of weddings. Top hotels. Couples spending serious money to make their big day unforgettable.
And do you know what surprised me most?
We were already “expensive” but when we put our prices up, our conversion rate actually increased.
That was the moment I realised pricing isn’t quite as simple as it seems… there’s a whole load of psychology that goes on behind the scenes.
Why Cheaper Often Backfires
Pricing doesn’t just tell people what something costs. It tells them what it’s worth.
It’s tempting to think lowering your prices will make selling easier. Sometimes it does. But more often? It has the opposite effect.
You drop your prices…and sales still don’t increase.
Why? Because price is only one of the considerations when it comes to deciding whether to buy something or not.
And “cheap” doesn’t just mean affordable – it can also signal “low quality.” And that’s not what most buyers are looking for.
Think about it. In almost every industry, the majority of people aren’t hunting for the absolute cheapest option. They want value. They want confidence they’re making the right choice. If your price feels too low, instead of building trust you create doubt.
Research backs this up. A Stanford study found that people who paid more for wine rated it as tasting better than the same wine labelled with a lower price. The only thing that changed was the number on the bottle. That’s how powerful price is in shaping perception.
It’s why you’ll often see two businesses selling almost identical offers – but the one that charges more is seen as better, more credible, and more trustworthy. Your pricing isn’t just about covering costs. It’s a signal to the market about the value you deliver.
But that’s not the only reason to reconsider dropping your prices…
When You Drop Prices, You Drop Profits
Here’s something obvious that most business owners think they understand…but don’t really consider the full impact of… If you cut your prices… but your costs stay the same… the only place the loss can land is your profits.
Your overheads don’t magically shrink when your prices do. You’re still paying your team, your software, your suppliers. The cost of delivery hasn’t changed – but now you’re making less from every sale.
And it gets worse…
Because even a small drop in price means you need a lot more sales to hit the same target.
Let’s say your goal is to hit £200k a year in revenue. You’re selling something for £50 a month.
That means you need:
£200,000 ÷ £600 (12 x £50)
= 334 sales (rounded up) to reach that £200k target.
Drop your price to £35 a month?
£200,000 ÷ £420 (12 x £35)
= 477 sales (rounded up).
That’s an extra 143 customers you now need… just to make the same amount of money.
That’s more leads, more conversions, more customer service, more delivery – and often more stress – for zero extra revenue.
So before you slash prices to try and boost sales, ask yourself this:
Are you ready to do 43% more work just to stand still?
So… If You Need More Sales & Dropping Prices Isn’t The Answer – Then What Is?
If sales are slow, it’s usually not because your prices are too high. It’s because your marketing isn’t doing what it should. Pricing is the easy thing to blame – but more often than not, it’s a distraction from the real issues.
So what do you do about it?
First Get Clear On Your Numbers…
Before you change anything, you need to understand your numbers properly. Not vague ideas. Actual data.
What’s your revenue goal for the year?
How many sales do you need to get there?
What does it cost you to deliver what you sell?
What are your overheads?
How much are you spending to acquire a paying customer?
Most people don’t know the answers to these – and that’s why they end up making decisions that hurt their business instead of helping it.
I’ve got a few blogs here that might help you with this…
And once you do know your numbers, something interesting happens. You might realise the smart move isn’t to drop your prices – it’s to put them up.
Let’s say your goal is £200k. If you’re selling something at £50 a month, you need 334 customers to hit that target. But increase your price to £75 a month and suddenly you only need 223.
That’s 111 fewer people to find, convert, serve and support – for the same result.
Less pressure. More profit. More headspace to actually grow.
Then Fix The Funnel…
If you’re not making enough sales, chances are your funnel isn’t doing its job.
A proper funnel should mean that you turn the tap on, leads come in, sales come out. Simple.
But most people either don’t have a funnel at all, or they’ve got one with a bunch of holes in it and they don’t even realise where the gaps are.
The tricky part? You won’t fix it until you know where the problem is.
If your issue is at the top of the funnel, not enough people are finding you in the first place. You’re not getting enough reach, visibility or traffic. Maybe you’re posting content but no one’s engaging. Maybe you’ve got great offers – but no one’s seeing them. That’s a top-of-funnel issue.
If your problem is in the middle of the funnel, people are seeing you… but not sticking around. They might follow you, read your stuff, open your emails – but they’re not taking the next step. They’re not joining your list, booking calls, or engaging with your offers. That usually means you’re not building enough trust, or your message isn’t connecting properly.
If the issue is at the bottom of the funnel, people are showing interest – but they’re not buying. You’re getting leads, maybe even sales calls, but they don’t convert. That could mean your offer isn’t clear or compelling enough. It could be that the buying process is clunky. Or that your follow-up is weak (or non-existent).
The point is – it’s not enough to say “I need more sales.” You need to figure out where the bottleneck is… and fix that first.
Because pouring more people into a broken funnel won’t get you more clients – it’ll just waste your time and money.
Need a Little Help?
If you’ve read this and realised you don’t actually know your numbers…
Or your funnel is more of a black hole than a sales system…
Or you’re still stuck wondering what to fix first…
You don’t have to figure it out on your own.
I work with six- and seven-figure service-based businesses through Strategic Marketing Evolution – giving you access to senior-level marketing support, without the six-figure salary price tag.
It’s not a course. Not an agency. Not a one-size-fits-all solution.
It’s hands-on support to help you:
Get clear on your numbers
Build a marketing system that actually works
Stop wasting time (and money) on things that don’t convert
And finally make your sales and growth predictable – not chaotic
If that sounds like what you need, you can check out the details here: https://strategicmarketingevolution.com/marketing-growth-support/
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