You have significant value and your pricing should reflect it
Pricing is key for small business owners, and over the last 6 years, we have seen so many business owners just guessing on what they should set their pricing at. They throw a number at the wall and hope it sticks. Always wondering if they are setting their pricing too high or too low.
The result of pricing without a strategy: business owners are overworked and underpaid, unable to stay on top of their bills, and frustrating customers with constant pricing adjustments.
You may be wondering how we know what to set pricing at…
Our not-so-secret formula: Data + Value = Pricing for Profit
First, you have to look at your numbers to price appropriately. What does it cost to make your product, or deliver your service? What’s your overhead? What are your competitors charging for similar products/services?
For most of our clients, that’s the easier part of the equation. This second part, the value part, feels a little unnatural to factor in, especially as female business owners. There is something so powerful about paying yourself for all the hard work you do!
We’re partners, mothers, aunts, sisters, and friends- all incredibly important jobs that are often characterized by placing higher value on the needs of others. We take care of them before ourselves.
From now on, you will factor your value into your prices. Period.
Add “successful entrepreneur” to that list of extraordinary accomplishments, and start recognizing your own value and hard work. Going forward, when you start strategizing how best to price your product or service, these are questions you can ask:
- What does it cost to make your product, or deliver your service?
- What’s your overhead?
- What are your competitors charging for similar products/services?
- How is your product/service changing people’s lives?
That is how you find your pricing sweet spot. That is how you build a profitable, sustainable business that’ll change your life and the lives of those you love. It won’t be easy at first, but you’re not afraid of doing hard things. Just remember, you have value and it’s significant. Start planning for profit, cheers to you!
