One of the questions I ask my business coaching clients is ‘How did you determine your prices?”. A common response is “I looked at the going rate of what other people in my industry charge and went with the average”.
Yikes! Stop assuming that you are the only who didn’t get the owner’s manual and that everyone else knows exactly what they are doing. When you price your services based on what your competitor is doing, you’re really pricing your services on their limitations! Especially when you go with the low end. The people on the low end of the price spectrum are there because they don’t believe in themselves or understand the value they offer.
Does that make sense? The truth is, most people share the same fears about their value and abilities. However, you do not have to stay in that fear. You can move beyond it by the simple act of believing in yourself and the value you bring.
The cool thing about knowing your value is that it isn’t about a specific dollar amount. It’s much more about the position you want to take in your market. If you must set your prices based on what your competitors are doing, at least compete on the high end. You don’t really aspire to be average do you? Why not go for the top?
I never tell my clients how much they should charge for their services. I do however, help them see their value and from there they can determine the price tag they want to put on their services. It’s a much better pricing strategy than monkey see, monkey do.
Forget about what everyone else is doing and decide what your services are worth based on the value you deliver. You can get started on this by making a list of all the things that make you special. You can list your credentials, your experience, and most importantly the benefits of your service. Next, determine the hourly rate that you need to make in order to have a profitable business and compare that to your value list.
How do the two compare? Is your pricing an accurate reflection of the value you deliver? You will know whether or not you came up with the right price based on how you feel about it. If you feel empowered, and maybe slightly uncomfortable, you are pricing your services based on your value. If you are still justifying your prices and have fear around it, you have some more work do to. Go back to your value list and keep at it until you know without a doubt that you are priceless!
You can’t build a business on a shaky foundation. Belief in yourself and the value you offer are essential to laying a firm foundation that will set you up for success. Remember, you can achieve whatever you believe!© Copyright 2013 TextOnly'Admin