There’s a tricky topic that can make the bravest woman business owner quiver in her boots and doubt herself, whenever she’s faced with it. It’s personal. It’s emotive and yet it’s still BUSINESS! What is it? Pricing, of course!
In fact only last week I was talking to a new client who was working way too many hours for not enough money. I had to give her some tough love. I told her she was too cheap and giving out all the wrong signals!
She was really shocked but she soon realised what I meant. Even though she had probably known this for ages, she had been scared to put up her prices because she thought no-one would buy. Instead, people were buying but they were the wrong people – people who wanted cheap services rather than those who wanted GOOD VALUE (There is a BIG difference).
Anyway, we put up her prices and she’s already started attracting the RIGHT kind of customers – it’s going to get better and better for her as she has to work fewer hours to make the same money. Yay!
So I know for many of you, just the thought of getting your pricing right makes your blood run cold.
- What should I charge?
- How do I set my pricing?
- How will I know what’s right?
- What if I’m too expensive?
I’m asked these questions on a daily basis and I know they’re driving you NUTS.
So Why Do Women Struggle With Price?
Lack of confidence and that pesky ‘little old me’ syndrome have a lot to answer for when we talk about pricing
Chances are that you’ve fallen into the ‘Price Trap’.
You look at what your competitors are charging and opt for prices just above or just below them, depending on where you believe you rank in the pecking order (which can have damaging consequences if you’ve made the decision on a day when your confidence is low!)
Perhaps you’ve asked your friends and family what they think and been greeted by a sharp intake of breath.
Suddenly you’re back to the drawing board, questioning what you should charge.
For women business owners, pricing seems to be a particularly emotional topic and one we take personally.
- We worry that we don’t have enough experience or fixate on what our competitors are charging.
- Or worry that we’re getting it completely wrong if our competitors aren’t transparent about their prices.
- We also fear being judged by others. After all, perhaps other people might think you’re getting a bit too big for your boots if you put your prices up? You know what I mean, the voice in the back of your head that worries people are saying ‘who does she think she is?’
- Then of course there’s the fear that you might lose customers or not attract new ones
It’s just chatter, nothing more.
If any of this resonates with you, then it’s time to change your thinking.
Before you can get your pricing right, you have to understand your value. Because that’s what customers really want. Value.
- Ask yourself what value your products or services offer your customers?
- How do they solve a problem or meet a need?
- What benefits do they bring?
- How do they make your customers feel?
The Big And Little Details Count
Think About Your Hard Costs
How much do your products or services cost to provide in terms of raw materials, time, overheads, development, marketing, training and delivery?
Recognise The Value Of Your Own Abilities
You take for granted that you can create beautiful photography or handcrafted jewellery, or write, or that you’re good with numbers – that doesn’t mean everyone else can, or that what you do lacks value because you love it.
Oopsie! No Value?
If you can’t define the value in your products, then it may be time to refine or improve them
Be brave about your pricing, step outside the Price Trap and remember that VALUE doesn’t mean CHEAP