Deciding what to charge for your services can sometimes create confusion and tension! In this episode, I walk you through some of the key considerations when setting your prices to make the experience a little easier.
Whilst there is no magic formula to reach an answer, as each business is so very personal, there is guidance to help you make a decision and there is always opportunity to change your pricing when you’ve had feedback from your market.
Show Notes
- Pricing decisions should not be made in isolation – there are several factors that exert influence over your price points
- Don't be afraid of competition – it’s actually a good thing as it shows you that there is a market for whatever it is that you're offering.
- Where do you want to be positioned in the marketplace? Are you going to be really accessible, set in the middle portion of the market or sit way up high?
- Create a positioning matrix to map the market – investment level/price on one axis and level of service on the other. Place yourself and other key service providers/alternatives to your brand on the matrix for clarity on your own relative positioning
- Once you have made your positioning decision, ensure congruence across all of your marketing that reinforces that positioning
- Consider your own Financial goals when setting your pricing
- Do not make a financial decision for your clients – ensure your own money mindset does not get in the way of your being well compensated for the value you add to the world
- Where does this products or service sit in your Offer Staircase? How will you price it relative to what else you provide to the market?
- Have you created a clear Value Proposition? Your offer needs to Resonate, Differentiate and Validate to be strong
- Check your testimonials for key areas of similar feedback to help establish your “uniqueness”
- The Sweet Spot of pricing sits between the Resentment Point (where you are cranky about how much you are doing for what you are being paid) and the Snap Point (where you are so terrified by the price you’ve set that you can’t think straight)
