Pricing Strategies for the Go-Getter
Sharing some insider tips to help you price your products and services while understanding the value your brand brings to others!
Step 1 | Clarify your Value Proposition
First, what does branding have to do with your pricing?
Value Proposition (in marketing) is an innovation, service, or feature intended to make a company or product attractive to customers. - Google definition
Branding and marketing is how you communicate your businesses valuable services and products. It's essential to make sure that the value you and your business give is communicated effectively in your online and offline messaging (i.e. website, logo, style, events, experiences...). You know you're valuable, but does everyone else?
If you don't know how valuable you are...
...start making a master list of how you've helped others. Your valuable skills may seem simple and easy for you, but others may find them to be difficult or inconvenient. How do your skills add to someone else's life?
Here's my favorite formula for clarifying and ensuring that what your customer "pays/invests" is directly proportionate to what your customer receives (aka benefits) from you or your business.
Step 2 | Put a Price Tag on it! (3 C's)
As much as we all want to be like Mother Theresa and give everything for free because "we love it"....blah blah blah... there are other ways we can give back to others without struggling to pay the bills. If we don't take care of ourselves first we have nothing left to give to others. Make sure you value yourself enough to be able to give 100%. The starving artist mentality only works for so long until we realize we can't grow our ideas. I learned this the hard way when I waited forever to demand my worth monetarily in my business. Once my pricing was set up for success people valued me more, cash flow increased and I could finally afford to hire people to help me help more people.
Now I don't recommend shooting in the dark with your pricing. You want to find a confident balance that will show your customers that your valuable but not over the top impossible to afford. Below are some strategies that have helped me.
The 3 C's of pricing:
1 | Customer
Consider what your customer will pay for a product or service like yours. How do they make buying decisions? What's their income? Lifestyle? Priorities? What else do they buy?
2 | Competition
Time for research! Find companies that are offering similar benefits to similar customers. What are your competitors charging for similar services? Do you offer more or less benefits then they do? If so, how does your pricing relate? Make sure that you gather a lot of research from many different companies and then find the average of all. Consider location and credibility the business has as well. A company may be able to charge more based on the years they have built a reputation and expert role in their industry.
3 | Cost
Get out your excel and expense sheets! How much time, materials and money does it take to deliver your product or service? Are you taking a cab to your coaching session? Are you spending time creating your product? What is your standard hourly rate while your making your product?