Pricing strategy. It’s one of the first things we consider when starting a business… “What do I charge?” And unsurprisingly, it’s something we address again and again at every stage in our business. With every new product or service, pivot in business and when we’re ready to scale, strategic pricing is key to a sustainable and profitable business that serves you and your clients.
This month’s guide shares:
-Pricing mindset shifts you need to make & steps to raising your prices
-An inside look at the psychology of pricing – and how you can sell easily
-When and how to discount (and when you shouldn’t discount)
Continuing to follow community guidelines, we met online via Zoom.
How to Use Pricing Strategy to Grow Your Business (Monthly Guide Download)
-Tough Pricing Questions: Turning ‘How Much?’ Into ‘Yes!’ presentation by Alan Berg
-Quotient App - quote delivery service when clients inquire
-“Start with WHY”- Simon Sinek Ted Talk: Discovering WHY you do what you do (your passion behind your business) and how to convey that to clients & reflect your value in pricing
The following were resources were mentioned in the group by fellow members:
Value yourself first and then price what you’re worth
- It’s normal to work through different levels of pricing throughout your career.
-It’s good to find a sweet spot so you’re between people who are looking for a deal and those willing to invest.
-Pricing also reflects the time, money, training, and experience that went into shaping you into the business owner you are now. You may be able to get a job done in a few hours but your value is in the time and effort you put it for years beforehand to get to a point where you can do that project in a matter of hours.
From this month’s Guide:
-Don’t think of it as ‘it’s only 3 hours.’ Think of it as ‘I worked for months or even years to get this down to a science so that I can do it in 3 hours. They are not paying only for my time, but for my expertise.’”
-You can charge what you need to charge if the value and worth is there even if no one else is charging the same.
-Sometimes, people hire you because of your experience, expertise and access to your professional contacts. So, that’s definitely added value.
HELP CLIENTS BETTER UNDERSTAND YOUR VALUE
-Identify the pain points of your ideal clients to answer those questions to provide value and create trust first thing on consultation calls. Have those questions & answers written out in a document to use while on calls to help you know exactly what to say.
-If you can, create client pricing guides or an FAQ page on your website that address client pain points before you even talk to them in person; they’ll feel grateful to you and be more trusting of your expertise if you offer “free advice” or reassurance.
-Trust your gut when you interact with clients for the first time- if you have a service-based business where you work one-on-one with them for the entire project then trust your gut if they are a good fit or not
-It’s okay not to offer discounts because the work, time, and costs that go into your products or service don’t change.
-It’s okay to say no to a potential client because they aren’t in your budget. Don’t feel like you have discount to meet people at their budget
-Don’t feel pressured to do things for free or discounted because this is your business and you have the right to say no if people want free work. This is especially true for family and friends.
-You may not want to itemize everything in your service because people might pick and choose to take certain things out and try to lower the price. You can list a few key components, but keep them vague enough so they can’t choose something to take out.
-“You wouldn’t ask the chef, If I take out the potatoes, could I get my steak meal for a cheaper price?”