Pricing Mistake #3
What is the value of my life?” a young girl asked her father.
Instead of answering the question, the father told his daughter, “Take this rock and go sell it in the street market. If anybody asks about the price, just raise two fingers and don’t say anything.”
OK… Hold on!
It’s a good story and worth getting back to, but first let’s talk a little about human nature.
You know what’s deeply human?
Canvasing the audience. We all want to be loved, accepted, welcomed, and yes, valued, so we tend to feel out the audience before moving forward rather than relying on our innate and inner wisdom.
The Dangers of Sourcing Your Value.
[WARNING] Everyone has an opinion. EVERYONE!
All those opinions, comments, and reactions can be confusing and deafening, but far more dangerous, they can be paralyzing.
When it comes to pricing, product sellers have it a little easier since there’s overhead to consider, physical elements like ingredients and packaging, but for those of us with a services gig it can be much more difficult and scary, especially starting out.
MY JOURNEY:
When I started out in business I charged $25 an hour for my graphic design services. I even did barter work. Didn’t work. Never does, but that’s another subject for another day.
I also took on a client for $12/hr on the “hope” it would lead to more exposure in “hopes” of more clients. It didn’t. The exposure didn’t happen because I was their well-kept secret and their work consumed so much of my time, I didn’t have time for higher paying clients when they did come along.
I’m convinced that one of the main reasons, often unconscious, some are fearful to niche down and get specific about who they really want to work with is because they fear their self-confident, well-valued price will result in less sales.
They resign to playing small and stay in the low-confident numbers game… Volume versus Value.
“If I offer work at a low price point, I’ll always have work.”
Lean in and listen carefully, Girlfriend!
A lower price point may assure you of more work, but it will never assure you of a healthy bank balance. There is only so much time in a day and, right now, probably only one of you.
Time to level up to the high-confident numbers game.
Pricing Mistake #3: Pricing By Committee
Did you know that corporations, do in fact, have Pricing Committees? Makes sense at their level but not at ours because our services are still wrapped snuggly around our passions and personal self-worth. That’s OK and exactly how it should be.
Don’t you dare make the mistake of disconnecting your passion and self-worth with price and value. They are and should be completely intertwined and connected. In fact, when one does disconnect them that’s when everything goes to shit.
Let’s review how people often canvas their audience to feel validated about their prices:
They look at their competitors
They look at those in their target market
They look at those who are in the market for what they do
That makes sense, right? Seemed reasonable to me too at first, however, let’s look deeper at the real danger in it.
First and foremost, everyone has different perspectives on worth, value, and money. Everyone has inner money blocks, just like you, that are reflected in what they do and how they act.
How you do money is how you do everything.
Here’s the biggest danger in asking someone what you should charge.
Whatever they tell you - good and bad - will stay with you.
TRUE STORY:
At a business networking event, I bounced the price of my new course off a business friend, who I thought may even take it. The first words out of her mouth were, “Geez, that’s sounds like a lot.”
Ugh… I immediately shrunk and then carried the weight of her comment around with me like a sack of rocks for months. Not only was it a direct shot to the heart of my self-worth, the worst part was that it paralyzed my progress.
I paced back and forth on that justification trail for months:
“Maybe she just wants a deal.”
“Maybe she doesn't understand everything she’ll get.”
“Maybe I didn’t explain it well enough.”
“Maybe she thinks I don’t know what I’m talking about.”
“Maybe she doesn’t value my work.”
“Maybe she just doesn’t like me.”
Oh yeah! I dove straight down that rabbit hole head first! Ouch! All that inner talk paralyzed me from getting that course going for an entire year!
I eventually gathered the strength to ask her about her comment.
“Really, I said that? I’m so sorry. I guess it must have been because I was going through my divorce then and all I could think about was how I was going to pay my bills.”
Hmmm, nothing to do with me.. again! I’m so good at beating myself up.
I know, without a shadow of a doubt, that you know exactly what your number is. It’s the same as when I work with someone on their branding, logo, or website. They know exactly what it should be and look like but often they just can’t express it… yet.
It’s in your heart, head, and soul. Trust yourself. Believe in your value.
If you don’t believe in your value how can you expect others to?
But if you’re going to ask anyone, ask your personal business coach. Don't even ask the business group you’re in even if they are in your industry. Everyone has variables, biases, and money blocks. Don’t add those to your load of worries. They belong to them, not you.
“Don’t base your net-worth on someone else's self-worth.“
Your personal business coach knows you, your services, and your comfort level. When working with a client on pricing, I gently guide her to the edge of her comfort zone and then ask her to take step forward-just one step. Could be a big step or a small step, it’s up to her, but nevertheless, a step. And that’s where we begin.
Remember... nothing is cast in stone. You can change your pricing any time of any day. And there are countless ways to incentivize people to use your services without offering them at rock bottom prices.
Everything you’ve ever wanted is right outside your comfort zone.”
You know in your gut what your time, experience, education, gifts and talents are worth. You’ve just been afraid to say it, to voice it. Time to speak up, Lovely Lady!!
Best, Janet
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