Money is tricky.
As business owners, we all want to make loads of it, and we’ve spent a lot of time coming up with brilliant ways to do it. But nothing fills us with more dizzying anxiety or gut-wrenching dread than actually asking for it.
It’s no secret that women have all sorts of hang-ups and insecurities when it comes to placing a price on what they offer and standing by it.
In fact, I’ve coached virtually all of my clients through at least some aspect of their pricing strategy, whether about setting rates, knowing when and how to raise prices, or talking confidently about money with clients.
And you know what I’ve discovered? The root of the problem almost always comes down to the same thing — an unnecessarily fearful, cautious and protective mindset that leads women to undervalue themselves and their services.
Well I’ve got news for you: It’s a heck of a lot easier to manage the pricing side of your business – and make more money – when you GET OUT OF YOUR OWN WAY!
Today I’m going to help you do just that by re-framing your pricing mindset in two important ways. Stay with me on this, and I promise you’ll reap the very real, cash-dollar benefits for years to come!
Focus on the Value You Offer, Not on Other People’s Rates
One of the most common things I hear when I talk with my clients about their pricing problems is that they’ve spent a lot of time cautiously comparing themselves (education/experience/specialty/whatever) and their businesses to others.
While some knowledge of your market can be really helpful, too much comparing — especially when it comes to pricing — can be a dangerous thing.
It’s all too easy to fall into the trap of making false or unhelpful pricing comparisons based on the aspects of your businesses that can be easily quantified, and then basing your pricing strategy on those same metrics.
In other words, you end up comparing what other people charge by the hour, session, or whatever (and who those other people are) to come up with your own rates, instead of focusing on what’s really important: VALUE.
After all, the value of what you’re offering your clients is what this whole business you created is all about. You want to help them solve their health problems once and for all; find the most meaningful and rewarding career path; learn to write amazing copy; or whatever gets your blood pumping in the morning!
People don’t get excited about buying your time or your sessions — they are motivated by the solutions you can provide to the big problems they’re facing. Tweet that!
The value of your solutions — that’s what you should focus on when you set your rates. The best part? It’s entirely unique to you and your business, so there’s no comparison necessary.
Let’s look at an example:
If you’re selling coaching sessions in which you work closely with clients to revamp their shopping, cooking, and eating habits to rid them of chronic illness, don’t sell yourself and your business short by pricing the service as just a “one-hour coaching session.” And don’t convince yourself that you deserve to earn less for this service than a naturopath might earn in the same time frame.
Why? Because with your help, your clients can transform their health and well-being for a lifetime. Surely that’s worth more than what you might charge as an hourly rate!
Once you wrap your head around what you offer in terms of solutions and value, it’ll make things a lot easier (and more profitable!) for you when it comes to pricing, marketing and sales.
My personal recommendation for you: Setting an Income Goal? Avoid This Common, Dollar-Draining Mistake
Stay Out of Other People’s Finances.
Even when focused on value, though, many solopreneurs talk themselves out of charging the rates they deserve because they believe prospective clients won’t be able to afford or justify spending that amount.
My advice here is really simple: get your nose out of other people’s money!
The financial situation of your prospects is none of your business, and it’s not your job to protect them from spending too much of their own money. If you’re worried about raising your rates on current clients, this goes for you, too.
It’s important to always show your clients respect and trust (unless they do something to tarnish that, of course), and this is especially true when it comes to letting them make their own buying decisions. Tweet that!
There are people out there – comic book collectors, drug addicts, Real Housewives – who spend hundreds of thousands of dollars every year on seemingly frivolous and often dangerous stuff. You’d better believe the sellers on the other end aren’t worrying about whether these people can afford it.
There are three basic truths to remember here:
- It’s up to the customer to decide whether the service you’re offering is worth the price tag to them. (And remember, it’s your job is to convince them it is by communicating your value!)
- If they want it badly enough, they will pay for it at the rate you’re asking.
- If they don’t, there will always be someone else who will. There’s no shortage of clients in the world, and you want the ones who agree to your value!
When you talk yourself out of charging a higher rate because you fear your clients can’t or won’t pay it, you’re essentially haggling with yourself on your client’s behalf.
Stop doing that!
Instead, focus all that energy on creating an offer that provides too-amazing-to-pass-up service and value — and commands an even higher fee than you ever thought possible.
My personal recommendation for you: 7 Most Common Obstacles to Making Six Figures (and How to Overcome Them for Good)
Move Forward with Confidence
In the game of pricing and selling, you’re always going to lose if you get stuck in the comparison trap and make other people’s money business your business.
Re-framing your pricing mindset to focus on the value of what you offer and forget about protecting potential customers from spending too much will free you up to tackle other, bigger decisions with spectacular confidence.
Feel like you’re ready to learn more about creating, pricing, marketing, and selling amazing offers to grow your dream business?
Good, because there’s so much more I’d love to share with you! Why not join me and a small group of like-minded businesswomen in Make It Work Online, my wildly successful three-month coaching intensive?
As always, I’d love to hear from you.
What factors do you consider when you price your services?
What other faulty assumptions or mental blocks have you dealt with as you’ve built your online business?
What is the #1 piece of pricing advice you’d offer someone just starting out?
Leave me a note in the comments, and I’ll get back to you personally!