Here’s something that comes up with the ladies I coach again and again. Pricing.
Only recently I was talking to a 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’d 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.)
We put up her prices and she started attracting the RIGHT kind of customers. Fewer hours, same money. And it’s only getting better.
Why Do Women Struggle With Pricing?
Lack of confidence and that pesky ‘little old me’ syndrome have a lot to answer for.
Chances are 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.
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 everything.
For women business owners, pricing seems to be a particularly emotional topic. We worry that we don’t have enough experience. We fixate on what competitors are charging. We fear being judged – that voice in the back of your head worrying people are saying “who does she think she is?”
Then there’s the fear of losing customers or not attracting new ones.
It’s just chatter. Nothing more.
Understanding Your Value Changes Everything
If any of this resonates with you, 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 do 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?
Know Your Hard Costs
How much do your products or services actually cost to provide? Think about raw materials, time, overheads, development, marketing, training and delivery. You need to know this number inside out.
Recognise What You Bring To The Table
You take for granted that you can do what you do – whether that’s creating beautiful photography, writing brilliant copy, or being amazing with numbers. That doesn’t mean everyone else can. And it certainly doesn’t mean what you do lacks value just because it comes easily to you.
Be brave about your pricing. Step outside the Price Trap. And remember: VALUE doesn’t mean CHEAP.