What’s the one thing that really hangs entrepreneurs up about creating packages and pricing?
Perhaps you’re plagued with questions, such as:
- How much do I charge?
- Am I really going to charge that?
- Will people pay for that?
And the list goes on and on.
Today, let’s tackle your mindset about setting your prices.
Price base on the results you give
Most entrepreneurs, especially at the beginning of their businesses, have a tendency to want to charge low because they think, “I’m just new. Therefore, I can’t charge a high price or I can’t charge what I really think I’m worth.”
This is the first mindset problem you need to tackle. Why? Because your pricing is based on the results your ideal clients receive upon working with you.
For example, if you’re a health coach who can help someone lose 30 pounds, that’s the result that you are selling, and you base your price on that. Don’t undervalue yourself because you think you need another certification or another year of experience. It’s all about the results – always.
Of course, don’t price yourself out of the marketplace (that’s where a competitive analysis comes in handy), but don’t just assume that you need XX years of experience to charge what you are worth.
Don’t assume what your clients can afford
Another mindset challenge is assuming what your clients can afford. This is when you say to yourself, “They’ll never pay that!” The problem with this mindset is that you’re assuming your ideal clients can’t afford you. Trust me, if you have the result they are looking for, your ideal clients will find a way to pay for your services.
Never base your prices on an assumption. This is an instant way to undercharge for your services.
Implement incremental price increases
To help you become more confident in your pricing (and to improve your pricing mindset), try this exercise as you set your prices:
- Pick a price that you’re okay with for your products/services
- Make a commitment to raise the price after you sell so many products (for example, after you sell three, raise the price)
- Then, after you sell three more at the higher price, raise your prices again
- Keep repeating until you reach price resistance (this is the point when no one will buy your stuff anymore. It’s harder to reach price resistance than you think!).
I love this formula because you will get more confident and comfortable about your pricing because you’re raising them incrementally. In my business, I always raise my prices on my coaching packages after I sell three of them. I have been doing it for years, and I still haven’t reach price resistance.
Get mindset help
My business mentor, Fabienne Fredrickson, says mindset is everything when it comes to being a successful entrepreneur. I agree! Mindset affects so many aspects of your business life, especially pricing. So, if you are challenged with what to charge and how to be confident in your pricing, please find a coach or mentor to help you.
Here are some resources that helped me (no affiliate links – just passing along):
- Fabienne Fredrickson
- Denise Duffield-Thomas (especially her book, Get Rich, Lucky Bitch)
- Esther Hicks (especially her book, Money and the Law of Attraction)
- Leonie Dawson
If you want to be able to keep sharing your gifts with the world, you need to work on your pricing mindset. Changes are, you are not charging enough. What’s blocking you? What is your money story? Are you projecting your own financial scarcity into your pricing?
Working on your mindset is a constant journey, but don’t let that stop you from beginning this journey. Seek help from experts and be aware of your mindset issues. By doing so, you’ll be on your way to not only having a better pricing mindset, but an improved overall mindset that will upgrade your life and business.