How to Get Your Pricing Strategy Right and Charge Your True Worth
Your pricing is not a literal translation of your value as a human being.
Money is just money. A price is just a price. It’s not evil or manipulative to make a significant living from your business – not only to put food on the table for your kids, but also to have enough money to live an extraordinary life.
Remember, there’s no magical critic-proof price!
Even if you undercharge, someone will ask why you’re not serving clients for free – guaranteed! Don’t be offended; it’s just a business rite of passage
Try this affirmation: "It's safe for me to charge for my work".
You Can Charge What You Like!
Guess what? You can charge whatever you like. A few entrepreneurs find this really freeing. The majority of us find this sends us into an anxious spin.
When I was studying for my marketing degree, we were taught that pricing was just ONE of the “P”s of marketing.
The others include positioning, product, place (distribution), promotion, people, process, and physical evidence (how you show up to your customers, including your branding).
For some reason, though, entrepreneurs really take this one P – pricing – incredibly personally.
Here’s my easy – and relatively painless – method for setting prices. It sounds really woo-woo, but it works.
I ask my intuition.
Considering that pricing is the most subjective thing in the world, the only thing you can do is to be energetically congruent with your chosen price point.
If you price too high because someone else told you to, you’ll feel out of integrity. If you undercharge, then you’ll often attract clients who don’t value your service. Read more about how destructive this can be in my Pricing Mistakes series.
How did I come up with my prices?
Well - there's a good and a bad way to set your prices.
At first, I looked around at what everyone else was charging in my industry, around $80-120 a session and charged just below that.
Big mistake. Big. Huge.
Whether you're just starting out or an established professional, you don't want to be the cheapest in your industry. Trust me - most new entrepreneurs do the same, so you're pricing on collective insecurities and industry myths.
Put bluntly, you're basing your net-worth on someone else's self-worth.
This is true whether you're a graphic designer, life/business coach, health professional or you sell physical goods. This is a mindset problem NOT an experience problem.
I hear entrepreneurs at all stages of business say this:
“I'm just a beginner - I shouldn't charge too much - what will people think?!”
“I need to work for free for longer, just until I get more confident.”
“She's got more experience than me, I'll charge below her rate.”
“Nobody in my industry (or city) charges more than $X.”
Sure - sometimes the market will bear a particular price but mostly, that's an excuse to undercharge your true value.
Getting your pricing strategy right
So… if you shouldn't compare yourself to others - how the hell do you choose your price?
Here's the answer - it has to feel right energetically.
This way, it's totally true to who you are right now. You'll be able to state your prices with integrity, without freaking out and worse, sabotaging your business.
Ignoring everyone else, what feels like the right price to you right now?
Just sit for a moment and ask yourself the question. Listen to the first number that pops into your head and then play with it. How does it feel to raise it a little, then a little more?
You'll find the right number. Even if it feels a little scary. It should feel like a stretch, but good from an energetic perspective.
It also doesn't mean you pluck out a high number willy nilly - I couldn't have charged $1,000 out of the gate (my hourly rate now). I would have felt like a total fraud.
At that time, $75 an hour felt okay to me, but if I'd have stayed there, I wouldn’t have a multi-million-dollar business without major stress and burnout.
Within two months of starting my business, I increased my rate by 29% with this one simple technique. Then another 54% a few months later.
I stretched myself constantly, and yes - sometimes it was really scary. But don't worry – as time goes on, you'll find it much easier. Get a copy of my Ultimate Guide to Pricing for Entrepreneurs, with tips on everything from setting prices to increasing your rates, here.
But you have to start where you are … right now.
Try the exercise and see what answer you get. It might amaze you. Do it now - just put your hand on your heart and ask yourself the question.
It doesn't have to be a big production. You don't have to meditate first (unless you want to).
You don't have to wait until the next full moon or get naked and chant.
Now is the perfect time to ask.
Write down the number you get. It's a great first step and nothing is set in stone.
It’s your time and you’re ready for the next step,
PS: To nail your pricing strategy in your business I’ve got an awesome bonus for you. Change your money mindset (and life) with the exercises and ideas that I share in my Ultimate Guide to Pricing. Get your copy here.
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