It doesn’t matter what or how you’re pricing your service or products. There are going to be potential(or current) clients that question the potential investment with you. Those questions make it incredibly hard to have confidence in your pricing.
“I wasn’t expecting to pay that much.”
“Whoa. That’s a little out of my price range.”
Or even worse…
“What makes you think you can charge that much?”
Let’s be honest, when you’re being asked that question regularly, it knocks ya down a little.
Having confidence in your pricing is HARD when it’s questioned directly to your face.
The first thing I want to encourage you to do is take a step back and think about the “potential client” asking this question.
Do you think he/she has the potential to be converted into a great client?
If the answer is yes, then go ahead and spend the time explaining the process. Go into detail about an experience with you, everything you do for them. Really lay it all out there so they can see and UNDERSTAND the value of working with you.
But if you get the feeling that this person is just a bargain shopper, will it be worth your time and energy?
These clients tend to be more draining on you personally. In this case, just explain that you’ve done the math and this is what you need to charge to have a healthy and successful business. If they want to book you(or purchase from you), they will. If not, you probably saved yourself a big headache and several sleepless nights due to stress.
But to have true confidence in your pricing, you need to back it with facts.
Instead of just coming up with numbers off the top of your head and trying to be “competitive” in your local market, base your pricing off of facts.
What do I mean by that?
Well it’s really a 3 step process that takes into considerations your CODB, yearly budget, and your sales average goal.
First you need to figure out your CODB.
If you look through your numbers and data, really figure out your cost of doing business(CODB), you can create a pricing guide that’s literally based around your business.
Not someone else’s.
And not a guess.
It’s truly based around what you personally need to make in order to live a life you dream about.
Then, you create your yearly budget.
Using your CODB and your planned salary, create a yearly budget so you know exactly how much you need to bring in each year to not only live your dream, but also have a healthy and successful business.
P.S. We use the Budget Blueprint in 90 Day Dream Biz in order to make this super easy for you.
Finally, create your price list.
Don’t just throw out numbers though. Figure your sales average based on time you plan to spend working and the number you figured out that you need to bring in each year to meet your yearly budget.
Once you have that sales average number, create a strategic price list to meet your sales average goal.
In 90 Day Dream Biz, we use the Magic Pricing Calculator. It figures your pricing for you quickly and automatically, so you don’t have to waste time.
It’s easier to be confident when your price list is based on facts, but you won’t need to answer the question as often with the right marketing strategy.
When you’ve figured your pricing guide number by number, it’s so much easier to be confident in what you’re selling. You know that what you have figured is exactly how it needs to be priced in your business.
The clients you currently have likely don’t understand your CODB- nor do they care. As we’ve established, they are just looking for a bargain.
The good news is, as you transition from the bargain shoppers to the RIGHT client, you won’t have to field the pricing question as often. And as your marketing plan develops strategically and you start drawing in the clients that appreciate you, you’ll notice the shift in the questions you’re asked. It’ll be more about the experience and less about the cost.
As you create a brand, amazing clients that appreciate what you do will want to work with you more and more. Not because you’re cheap, but because of what you provide.
And you’ll notice a shift in your confidence when you do get the pricing question.
As you begin to value yourself, your business, and the service and products you provide, confidence in your pricing comes easily.
Think about it like this. When you started driving your vehicle, you weren’t great right? Technically, you knew what to do, but it took a lot of practice to get confident behind a wheel. Now though, you get in without thinking.
It’s the same with confidence in your pricing. You just have to keep going and soon the question about your pricing won’t even bother you because you’ll have so many client’s you’ve made happy… Who even cares about those few who questioned your prices.
Join my FREE Facebook Group- Dream Biz Developer.
Every Thursday, I host a Free Facebook Group coaching call regarding all things business, pricing, and automation. You can ask questions, give your opinion, or just watch from the sidelines.
I’d love to have you join though. These Thursday Live Facebook Coaching Calls are one of my favorite things!