We were having a chat in one of my client groups recently about marketing and pricing, and a few ladies ventured forth with some confessions.
“Someone asked me about my fees the other day,” said one lady, “and so I told him, and before he even had a chance to respond I carried on talking and discounted my prices down TWICE without even pausing for breath.” She was laughing about it but she was kicking herself. “Why do I keep DOING that?”
So we had a chat about her value to her ideal customer and her beliefs about money – and a whole load of little old beliefs cropped up that were sabotaging her every time she talked about her fees.
“I daren’t put up my prices because my customers won’t be able to afford me,” said another lady. “Oh really?” I replied, “what evidence do you have to support THAT little belief?” It turned out there was no evidence – she was just feeling vulnerable and scared that no-one would buy if she raised her prices.
“I just found out I was losing £5 on every handbag I sold,” chipped in another lovely lady. “Until I did that costing exercise you set me, Claire, I had no idea what it actually cost me to make a bag. I got a real shock, especially as I was selling to shops at a loss! Now I know exactly what everything costs, down to the thread, so I can set proper prices. And people are still buying!”
Do any of these ring a bell with you, by any chance?
Because these ladies are not alone. Not by a long chalk.
Every day I see examples of women who:
- Believe they can’t charge a decent price because ‘no-one would pay that’
- Can’t bring themselves to tell people their fees – or if they DO, they talk their price down immediately for no reason
- Don’t like to talk about money because it makes them uncomfortable
- Are scared of spreadsheets and numbers
- Have no financial targets in their business because it’s never occurred to them
- Don’t know if they’re making a profit, or even covering their costs
Eeeek!
How can you run a profitable business if you’re stuck with all THAT? The answer is, you can’t.
But here’s the good news – turning it around is easier than you think. You just need to remember a few things.
1. You Are Not A Mind Reader
Stop trying to mind-read your customers. You can’t possibly know what they can or can’t afford.
How many times have you seen something you just HAD to have? Whether it’s a pair of shoes, a holiday, concert tickets – you hadn’t budgeted for it, but somehow you found the money. Because you VALUED it. That’s what people do when they really want or need something.
So how can you make your products or services so irresistible, such incredible value to your ideal customer, that they HAVE to have them? What problems do you solve? How do you make them feel? What difference do you make?
The clearer you are on your ideal customer and the more you market specifically to them, the better chance you stand of them finding the money to pay for you. Price becomes kind of irrelevant when you really want something.
Ditch the amateur mind-reading act and stop pretending to know what your customers can or can’t afford. You are worth it.
2. You Need To Know Your Numbers
I have a spreadsheet where I track all of my sales. I can see what’s already forecast – any payment plans or subscriptions in place are all in there. I also have a section for programmes and products I’ll be launching later in the year, and I make an educated guess as to what I can expect to sell (and I’m usually pretty close). In the top right corner I have my annual target.
Does this sound scary? It might, if you’re scared of numbers – I used to be! I hated spreadsheets and did everything I could to avoid them. These days I LOVE my sales forecast sheet. I look forward to updating it – it means I never worry about money because I ALWAYS know where I am financially.
What’s scary would be if I didn’t know. THAT would be really scary.
When it comes to money, ignorance is not bliss. Choosing to ignore the numbers in your business is a sure way to get into a mess.
Just bite the bullet and start working out what’s coming in, what’s going out and what it costs you to provide your products or services. Tools like Xero, QuickBooks or even a simple spreadsheet in Google Sheets can make this so much easier than you think. You might get a shock. You might get a pleasant surprise. But AT LEAST YOU’LL KNOW. And you can deal with it. You’ll feel better knowing, I promise.
3. You Have To Talk About Money
You have to tell people your prices. Even if it’s just on your website, your Instagram highlights, or your booking page.
Don’t be embarrassed. If you know your numbers, you’ll understand what it costs you to deliver your products or services. Knowing what it costs you will help you set your prices with confidence.
If you are evasive about money, or embarrassed, or talk your prices down as soon as you’re asked, then you are not only devaluing yourself – you’re also giving that person ZERO confidence in you.
If YOU don’t believe in yourself and value yourself highly enough to just state your prices with confidence, what are THEY meant to think? How would YOU feel if someone was like that with you? Exactly.
Have confidence in yourself. Have confidence in your pricing. You need to make a profit if you want to run a proper business. Simple as that.
So next time you get in a pickle when someone asks your prices, or you start to knock money off before you’ve even started – STOP! Think about your three money truths.
It’s time to stop being a wuss about money. Start thinking like a business owner and make money and numbers a key part of your business, every day. The sooner you do this, the sooner you’ll start to see the money flow!