Getting Clear About Money and Pricing
“How do I know how to price my services? If I charge too much, people will go away and if I charge too little I will starve!”
These are comments I hear from my clients regularly. Nothing will cause you as much stress and confusion as the topic of money; It brings up huge issues.
In many ways a retail business is much easier because you buy products and mark them up a certain percentage and that’s it. But when you are marketing your own service, and it’s all about you offering yourself, your time, your tools, and your expertise, it’s easy to become too subjective.
Here are some issues that often emerge:
• Poor self-worth.
“How much am I worth? Can I really help people? Am I good enough?”
• Fear of over-charging.
What if people think my price is too high and they say no.
• Poverty mentality.
I know I can’t afford it, so I assume my potential clients also can’t.
These issues can cloud your thinking and make it very challenging to come up with correct prices.
Here are some solutions:
1. Know your Niche customers
Focus on value to your niche clients. Know what they want and why. If they have a true burning need, your first obligation is keep your attention of them and not your issues.
2. Know it’s not you they want
Even though it can look like people are buying You, in fact they are really buying the benefits they want for themselves. You are only a conduit in this regard.
3. Believe you can help them
Many people have their own money issues and they will surface when faced with spending anything over twenty bucks. Part of your job is to help them feel okay about getting the help they need. It will only be okay if they in fact have a strong need for the benefits and they trust that you will be able to help them.
4. Believe your time is valuable
In general, services are higher priced when they include more face-to-face time with you. For example, one-on-one programs will be the highest price and an e-course will be lower priced. Understanding this formula is important.
5. Sell your skills and expertise
A trained specialist can usually charge more for a job than a less skilled person. This isn’t meant to under-value anyone’s contribution, but the engineer has had years of training, licensing, and skills beyond the average person and when someone needs their help, it is something they cannot do themselves. Most people can clean houses; they just don’t have the time or want to do it themselves. However, house cleaners can still have prosperous businesses based on hiring employees, selling products, etc.
6. Believe your benefits are worth it
The phrase, “I can’t afford it,” often means, “This isn’t a priority.” Most people say they can’t afford many of the services they pay for, but they do it anyway because they have decided the benefits are worth it.
7. Change the way you think
Likewise, if you hang around with people who are all struggling and poverty-minded, it will influence you seeing yourself the same way. You can begin by changing your own language and it might actually influence your friends in a positive way as well as yourself.
8. Have a clear vision
You need to have a clear vision and money map for your business. You need to know what your financial goal is, what all your expenses are and how many programs or jobs you need to sell in order to meet your goal.
Which of these points resonated with you? How do you feel stuck?
By Kaya Singer
Kaya Singer, Niche marketing specialist and expert at helping solo service business owners focus and grow from start-up to thriving. Free niche marketing program, http://www.awakeningbusiness.com/easyniche360/