Getting your pricing right…
… is impossible on the first try. The person who can write a formula on how to get pricing right on the first try will be a billionaire. And I am not that person. BUT here’s what I have learned from experience.
It takes experience.
That being said, here are some things to keep in mind:
Overpricing yourself will drive clients away.
People want to be confident they are going to get their money's worth from your service or product. If you are just starting out, you may need to be patient until you have built up a crowd of raving fans. Once you are in demand, you have more freedom to ask for a higher price.
Underpricing yourself will drive clients away.
If your prices are way below market, potential clients and customers may assume you aren’t offering anything of value. Someone once told me a story of an antique dealer who was trying to sell a beautiful chair that had be on sale for a while. They had “priced it to sell,” but it turns out shoppers thought it must be damaged to be on sale for so little. The seller upped the price and it sold the next day.
Don’t lock yourself in to a price.
As you gain experience and improve your craft, it makes sense that your pricing should increase as well. This is important to remember, when establishing the customer relationship. As stated above, you may know what you want to charge down the line, but are taking a lower price to get started. In this case, you can say to customers, “Typically I charge $XX, but since I am still building up my customer base, I would like to offer you the following rate.”
This allows you to establish your price, while offering a temporarily competitive rate.
When you set a price, OWN it!
This is where many entrepreneurs [yours truly] or even job applicants struggle. I know of two very established trainers who revealed they still sometimes fall prey to their inner critic and question if they are overpricing themselves.
Bottom Line: People will think you are worth it, when YOU think you’re worth it.
SEE BLOG POST: Paying the Bills vs. Waiting for the Right Client