The good news: there is no Price Police
I’ve got some good news for you today – there is no price police!
I’m telling you this because pricing confusion is one of the biggest blocks that the small business owners I meet seem to face. It can completely stop them from getting out there, marketing their business, and attracting potential clients.
Watch the video below or scroll down to read the blog.
People frequently admit to me that they avoid going out and marketing their business because they’re not clear or feel uneasy about their pricing. So many times I’ve heard the words: “Catherine, I’m not going out networking or doing anything to attract new clients yet yet – and I’m not going to until I get clear on my pricing.”
Sometimes they even admit that they avoid getting into a sales conversation with somebody who’s showing an interest in working with them because they feel so unclear!
What you need to understand about pricing
This is actually a really dangerous roadblock to let yourself get held up by, and an unnecessary one too. The thing is, figuring out your pricing isn’t something that needs to take a lot of time.
Now, there are things in your business that are essential to put some time and effort into. For example, getting clear on your ideal client, and crafting the message for that client so that they hear you loud and clear, or working on developing your unique branded system. But, pricing is not one of those things.
In fact can get clear on your pricing and make a decision about it in as little as five minutes. It’s really as easy as making a decision.
BUT, it does help if you understand a few things first:
1. There is no “Price Police!”
In other words, there is no such thing as “getting this wrong”. Nobody is going to come knocking at your door to tell you that you got your pricing wrong. Your business isn’t going to fail just because your price might be just a little too low – or a little too high. It’s totally fine to jump right in with whatever price you feel comfortable to start at.
There is actually no such thing as a “right price” for your work – at all!
This is what causes so much of the confusion, the belief that somehow there is a “right” price and you need to figure out what that is before you can get started. But it’s not true.
As an example, if we take a look at what I do, at the core of it I’m offering sales and marketing training and mentoring to small business owners. If you are looking for this, you could find lots of resources online, and here in the UK, there are even government organisations and banks that offer free business advice to startups. So you can get started with some of the basics for free. At the other end of the scale there are business mentors just like myself who charge tens of thousands, and even hundreds of thousands of
pounds for their advice.
With this huge scale of prices, how do I know the right price?
The way I know is by setting the price that’s right for me, and that’s right for my ideal clients.So to use an example from my business, I have an online programme, that other people would charge £2,000 to £3,000 pounds for, but at promotional times I sell this for as little as £500. Now, if there was a price police, believe me, they would definitely have knocked on my door by now! But I know that £500 is the sweet spot for my “ideal client”. AND (very importantly) this price also works for me and my business.To help you know what that “right price” is for you and your ideal client you might find this article helpful: How to set the right price for your services.
2. You can change your price at any time.
Yes. Anytime you choose, whether that’s based on external feedback (e.g. clients don’t seem to be taking you seriously) or an internal gut instinct – that pull in your belly that says “Oh, I’m not charging enough”. At any time you can change your price. The important thing is that you get started.
Get clear and confident on your pricing in just 5 minutes
If you relate to what I’m talking about, in particular if you are one of these people who thinks you can’t really go out and let people know what you do because you can’t talk confidently and clearly about your price, then I want to take you to a really quick process – and I would love to have you do this right away.
Be warned: It’s super-simple!
1. Choose a price
To charge for your services. That can be any price (no price police, remember?)
2. Stick to that price
Knowing that you can increase it or decrease it at any time. The only “rule” is that you can’t change that price on a whim while you’re in the middle of a conversation with a potential client. At that point your price needs to be fixed – like it would be on a restaurant menu.
However, at any point before or after that conversation, you can review your pricing. For example, you might set a price for your package of £600, but later you might think, “You know what, based on the results I’m getting at the moment, and the amount of energy that I’m putting into my work, I don’t feel that I’m charging enough to reward myself for my experience, for what I’m putting in and for the results my clients are getting. I’m going to increase that price to £700.”
You can do that anytime you choose (there is no Price Police, remember?)
My message for you is this – just get started! You will get further and faster in business if you start somewhere and are willing to move, than if you stand still waiting to get clarity.
The mistake you’ll probably make
The truth is, between you and me, is that most of us start off not charging enough. When I started as a coach, the first client I enrolled paid £60 for a six-week coaching package (that’s right, that worked out at £10 per coaching session!). Then, when I started this business, Selling from the Heart, the first workshop I ran, where I taught the very same content I now charge £500-£1,000 for, was only £47.
Not only is it fine to not charge enough to begin with, it’s also a part of the journey for many of us. And I would far rather see you start off with your prices a little bit on the low side, but actually get moving and get clients, then increase later, than stand still while you agonise about it.
Because you can’t get in touch with what your perfect price will be when you’re standing still.
For example, if I had not started out charging £1,000 for my private VIP days, I would never have had that moment in the middle of a a VIP day when I thought “Oh, my gosh. I’m just not charging anywhere near enough in relation to the value that people are coming away with from these days.” And so I increased it to what it is now, £3,000. That moment simply wouldn’t have happened had I not started out doing few of those days for £1,000 and then £1,500.
What if I don’t know what price to go for?
The other place where people get stuck on their pricing sometimes is just not knowing what price to go for. I want to challenge you on that because I find that most people instinctively know the value of their work. If you’re someone who’s listening to this and thinks “Yeah, but, I just don’t know what to charge, Catherine.” then I want to ask you this question:
“If you did know what to charge, what would it be?
Because if you’re like most of my clients you probably instinctively know the value of your work, but there’s usually a bunch of “money stories” or a self-worth story that gets in the way and clouds it. For example, even if you instinctively know the value of your work, you might have a story like “Oh, but, who’s going to pay for that?” Or “Who do I think I am to charge this much?”
So I want you to know, today, that it’s absolutely okay to know what you’re worth, and simultaneously not yet feel confident about selling it at that level.
A client who I was working with last summer had a very clear sense of internal value around the work she did, it was clear to her that the value of her package was £3,000, but she didn’t feel confident enough in her ability to actually sell it at that level (because of her lack of experience having sales conversations) and so she decided to start lower at £1,000 and work up from there.
Like I said, there is no price police, you just need to start where you need to be in order to move your business forward. If starting lower means you get moving, I would rather that for you than have you paralysed by indecision, or set a price that is so high that you’re too scared to offer it or don’t feel congruent about it.
Over to you…
Was this useful? Please, let me know in the comments below, particularly, if you are somebody who started watching this video feeling like you had now idea what your pricing is, so you didn’t even want to go out and tell people about your work. Have you decided what you’re going to charge? Type below and let me know – I love to hear from you!
Join me for a live Pricing Q&A
I’ll be going deeper on the topic of pricing in a Facebook Live Q&A at 1.00pm (UK) on Wednesday 11th April 2018 in the free Facebook group (Selling from the Heart Community). If you don’t feel confident about your pricing, and you know it’s probably costing you clients, then please do come along and ask your questions (I love answering questions.) Click here to join us.