Most people believe that they need to have confidence BEFORE they move forward with a goal.
When in fact, that philosophy is totally upside down.
You'd never get anywhere with anything if you wait for a solid sense of confidence before you move forward in any new pursuit. According to the strategic coach Dan Sullivan, you have to have commitment, courage and competency (in this order) before you can attain confidence in anything.
So how does this relate to how you price your programs and services? Well, money and fees is a loaded subject for many service-based business owners. What you charge for your programs and services has a direct correlation with the value you place on yourself. To put a monetary value on yourself is a scary process. It's not an easy thing to do!
Most people undersell themselves - equating to low fees, or a visible lack of conviction (or over-compensation) about your prices or services. This can keep you stuck in a never-ending 'limbo-land'.
If you require confidence before you walk unchartered territories, you'll wait forever.
Instead, do these three things:
(1) Come up with a price that you feel you can fairly and realistically charge for your programs and services without feeling out of alignment. You need to believe that you're worth this price, and to be able to say it to potential clients with a positive energy and in a self-assured way.
(2) If you feel slightly scared by this price, don't be. You're the only person who knows this price right now. Nobody has heard it yet. And it's natural to feel scared quoting a price you've never quoted before.
(3) Learn to be okay with getting a no.
If you believe in your ability to help your clients get results, then whether the person says yes or no will not affect your confidence. A no will simply mean that the person is not a good fit for you.
Then when you get a yes, watch your confidence soar!
Dealing with price expectations
Here's the thing... your perception of your client's expectations is probably all in your imagination. This can lead you to make irrational pricing decisions that are not factual.
- There are always people who want something 'cheap' and they usually shout the loudest (higher-end tends to be more discreet). Basing your pricing on the needs of this category is not a good strategy for your business, unless you're specifically targeting the bargain hunters.
- You might be frugal yourself and wouldn't dream of paying the prices you want or need to charge for your programs and services, which prevents you from charging what your programs and services are worth.
- Your competitors might charge incredibly high fees for a similar service, and you feel that you should keep up. But you don't have the skills yet which may lead to disappointed clients and will probably push you out-of-alignment if you charged the same fees.
- The reverse of the above is that your competitors might charge lower prices for a similar service, and you feel you can't charge much higher. But you may have much more experience and a much better track record than your competitors.
- You might also have other money values - that you are projecting onto your clients - there are many.
It's not your responsibility to decide if your clients can afford your services. If you're getting pushback, you may be attracting the wrong clientele.
It's also not your market's responsibility, or anyone else's responsibility for that matter, to tell you what you should be charging. Only you KNOW whether you're ready to charge a particular price. Remember, you're the boss.
Pricing is not fixed
Have you ever noticed how decisions such as determining the price of your products and services seem to be such a big deal? It's as if you have to commit to that price for the rest of your life. Again, your psychology is playing games with you.
In reality, you're not stuck with a particular price. You can change your prices any time you want to - it's YOUR business.
You can rebrand. You can diversify. You can level-up. Any time you want. In fact, you don't need a reason to change your prices.
Most customers don't care about price increases or rebranding, as much as you might think they do. And, if you're levelling up, well, you'll need to attract different clientele anyway. And you can always retain your pricing for your existing customers as a goodwill gesture to maintain stability.
Low prices equate to low consumer confidence
The irony is that charging low prices for your programs and services often results in your clients undervaluing you.
This means they'll doubt your authority and the effectiveness of your programs. They won't implement the steps. They'll request refunds. And you'll lose confidence.
Use pricing to convey a sense of authority
Pricing positions you in the market place and as a rule of thumb, cheap usually equates psychologically to 'not that great'. Generally, higher-priced programs and services are perceived to be 'better'. So it makes sense to push your pricing boundaries.
And remember, it costs as much money, time and effort to attract a low-value client for a low-priced service as it does a high-value client for a higher-priced service.
Adapting your mindset to thinking about confidence in this way is the first step to charging what you're worth. Your pricing is going to change as your business evolves over the months and years. With experience, you'll gain confidence in coming up with prices that reflect your value and worth.