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Pricing Too Cheap vs Too Expensive

How do you price yourself and do you worry about being too cheap or too expensive?

  • Don’t want to be too cheap because people won’t see it as quality, or people won’t value it?

  • Don’t be too expensive because my audience will not buy from me and I won’t have any clients?

I hear this a lot within the helping profession so I thought I would do a blog and video to talk about the challenges with pricing and give you a few hints and tips so that you can update the way that you look at how you’re pricing.

How most people decide on their prices

Many people within the helping professions look around at what other people are charging and then charge the same that’s exactly what I did when I first started and this comes with a few challenges.

1) It might not fit with your own needs in terms of building a business, how much money you need, how many hours you want to work etc. This can lead to you ending up a very busy fool where you’re doing lots and lots of hours and not really earning the amount of money that you want

2) It leads to a very flat market where there’s loads and loads of people offering things for the same amount of money. It doesn’t really differentiate you in any kind of way.

This is why I don’t recommend this way to decide on your pricing.

A Pricing example

The car industry for example, there are cars out there, Ferraris, Maserati’s people will pay hundreds of thousands of pounds to buy that car. At the other end of the scale, you have a second-hand market where you can pick up a car for a few hundred quid. And, there’s everything in between.

There is a market for all of those cars, pricing is just pricing, and it is a lot more to do with perceived value. Somebody that goes into a shop and buys a Ferrari for £150 000 doesn’t feel that that’s too much money. They don’t feel like they’ve been done, they feel like they’ve got value for a money, they feel like they’ve spent the right amount of money for the product that they’ve received.

Equally people don’t go in and buy a Ford Focus for £8000 and then turn around and think oh that’s not very good value for that car.

You buy the car based on your perceived value of the product or service for the thing that you’re buying. It’s far more about the expectations that you set of what’s going to happen and how much they’re going to pay and what’s included then it is about the physical figure that you give any particular thing.

Pricing is not about your expertise

It’s also not about your expertise. I have people who ask me ‘should i give a discount because I’m a newbie because I’ve only just trained’ and again the people who are charging £2000 for an hour aren’t always more qualified with more experience than people that are charging £40.

You might have the exact same level of expertise because pricing is not about expertise. Yes, you might want to offer a discount at the early stage with a new treatment because you want people to try it and you want to encourage somebody to come and give it a go. That is completely different than saying, ‘oh my expertise are only this level so therefore I’ll charge only at this level.’

Pricing yourself well

If we’re not going to price ourselves in that way, we’re not going to look around and see what everyone else is doing, and we’re not going to price based on our expertise level, what are we going to do instead?

For me pricing comes from looking at your own needs so:

  • how many hours do you want to work?
  • how much money do you want to make?

These are really important questions to ask, so that you can create a framework that’s going to earn you the amount of money that you want in the hours that you’ve got. This way you’re not going to end up a busy fool.

Another useful question to ask yourself is:

  • what market do want to serve?

There may be certain sections of the market that you feel a real compassion towards, and you really want to work with them.

Think about supermarkets, in England you’ve got Waitrose, you’ve got Tesco’s,  you’ve got Lidl and all those three supermarkets sell bread, milk and fruit.

They sell the same things; they just sell it to a different marketplace. So, have a think about where in the market you want to price yourself and who you want to serve. That’s an important question as well.

Then, we’re going to build a structure that allows you to service that market really well and you might then want to build certain things at certain price points.

Want more help with pricing?

If you want to have a look at all of this in more detail I go through in more detail in the Build it Brilliant book. You can get it on Amazon but if you purchase a copy from me you only have to pay for the postage. Click below to go and have a look at the book because it’s got things in a lot more detail and a lot more exercises that you can do in order to understand how to do your pricing and how to get that structure right.

Pricing Confidence

The other element for me is, it’s not just about what you’re going to choose as your pricing but equally your confidence behind talking to people and telling them that price, so there’s a mindset piece around this. Helping you to be able to say, ‘this is what I’m offering, this is my price and this is what you get for that price.’

Putting those simple conversations and boundaries in place so that you could then have them with confidence and go out and sell at that price.

If that’s the bit that you’re struggling with then have a look at my BiB Accelerator programme because that is about giving you accountability as you implement the blueprint into your business.

As part of the Accelerator I check in with you and keep encouraging your confidence to grow. I help you to structure the business, helping you to create the pieces and help you to get out there and serve the market you want to work with.

In Summary

Pricing is just pricing, please don’t look around at what everyone else is doing and then do that. Please don’t think that it is based on your expertise and then price depending on that. Pricing is structured strategic decision.

One final thing thing…..you can change it. Prices are not set in stone, you can put something out there at one price and then change it and that’s okay. So, don’t worry so much, you don’t have to get it right. You can decide on a price, put it out there, see how it goes and then change it if it doesn’t work.

I hope that’s helped you overcome your barriers and concern when it comes to pricing. It’s time to make some strategic decisions and stand by them. Just imagine how good it will feel when you’re charging effectively for your services and creations.

Zoe

 

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