Pricing - Mindset
OK, so I talk about pricing a lot but getting it right can make all the difference between success and failure (and remember success is definitely personal).
This blog isn't about the mechanics of pricing but more about what goes on in our heads and the thought processes. But first, a BIG disclaimer - I am not a coach, I do not have the ins and outs of how to address money blocks and the fears that may be holding you back in your pricing and business decisions, but I have been running Simplified Accounting for over 7 years and have had the same conversation lots and lots of times and it is these experiences that I can share.
If you sell tins of beans then yes, what price the competition are selling their tins of beans at is probably relevant. I say probably because you need to compare like with like - artisan beans are not the same as super-market value beans. They have a different target market and a different price point.
If you offer a bespoke service that is based on your skills, time and knowledge then what the competition charge is not important - you can sense check what you are doing but the reality is that you don't know their qualifications, their experience and skill sets or the exact details of their offering.
I DON'T WANT PEOPLE TO SAY NO
The reality is that we aren't going to be right for everyone: not everyone will like your products, not everyone will like your price point, not everyone will share the same ethics and values that you do (think cheap, fast fashion versus ethically sourced organic materials made locally or by disadvantaged workers who are then paid well and looked after) and actually not everyone will like you! And actually, that is OK, we can't be everything to everyone and we shouldn't aim to be. People-pleasing is hard work and generally soul-destroying.
If you are mass-market then yes, you probably want a yes 80% of the time, if you are high-end then getting a yes 20% of the time is probably more realistic. Work out where you sit and what conversion rate you need, then check your pricing sits accordingly. If everyone says yes then you are either pricing too low or are being too flexible to meet everyone’s needs which will only bite you in the bum later.
I DON'T WANT TO SAY NO
You might think that if you aren't in a service-based business this doesn't apply to you, it does. If you have a product you will still be approached by people with an offer 'too good to refuse' (their words, not mine), but if it doesn't sit right with you then say no. For example, it could be they want to stock your products but not on your terms & conditions, they might want you to white label products for them but if wholesale isn't what you want to do, then say no. Don't be pushed into saying yes when you want to say no.
If you have a service business, then it could be you've had an initial chat with someone but no matter how keen they are to work with you something doesn't feel right, and you don't want to work with them - it is perfectly allowable to not quote and not take them on.
Remember - your business, your rules! And you don't have to justify yourself to anyone else about the business decisions you make (well, tax man and bank manager maybe!).
Basically, yes - you ARE worth it!! Remember they are paying for your knowledge, skill and experience that got you to this point. They are buying your product or service because they cannot do it themselves and this has an intrinsic value.
- Comparison is pointless - comparing hippos and hamsters will never end well
- You can't be everything to everyone and you shouldn't want to be
- If they all say yes, then chances are you are too cheap!
- Don't under value your skills
- And remember - you are the only one of you and you do your business like no one else does.
If you were wanting more practical help on pricing then look back through my blog or look at treating yourself to my e-book. If you want support for your mind-set then check out Sophie French on Facebook