As I’m working with peeps one-on-one, I keep finding myself pointing out a simple truth that I’d love to share with all of you. Ready?
Your pricing is NOT forever.
No matter which decision you make regarding pricing — $15 or $45 for that necklace, $100 or $150 for that session fee, $49 or $349 for that digital product — it’s not locked in forever and ever.
There are no internet gods trolling to make sure you keep your product and service prices exactly the same until the end of time.
Prices can go up as the product evolves, as services are added, or as demand skyrockets. Prices can go down in the form of sales, specials, or buying incentives.
No matter which business you’re currently in, it serves you well to remember that the pricing decisions you make right now are NOT permanent.
I see peeps get caught up in the pricing doldrums and wallow…and wallow…and wallow…when what they really need is to make a decision and move forward. It’s easy to weigh what you’re doing against what someone else is doing against what someone you trust suggests, but the pricing decision is yours and yours alone.
Decision-making is easiest when you work backwards from knowing EXACTLY what you want.
Use these three clarifying questions to help you move forward with your pricing decisions right now:
Where do I see my business in one year?
If you have two kids at home and know they won’t be in Kindergarten for three years, you probably want to practice patience and grow your business incrementally. You have the advantage of planning and dreaming as your business evolves, tweaking your systems and strategies so you’re ready to rock it full-time when your schedule allows.
If you’re single and need to make rent all by your lonesome (and the check is due in two weeks), you’ll want to focus on growing your business much more quickly. You have the advantage of having time NOW to make your business dreams come true, and you can put your energy into marketing hustle and partnership building.
How many clients do I want in the coming year?
The level of busy-ness you’re willing to take on is a key factor in determining your price point.
If you want 10 clients and need to make $100,000, you’re creating an ultra-high-end brand and should focus your energies on creating a custom tailored, OMG-that-was-effing-awesome experience for each of your clients. If, however, you’re open to having 200 clients in order to score that same $100,000, your average price point is much lower and you’re creating a less-exclusive experience for each client that walks through your (virtual) doors. Knowing precisely how many clients you’re willing to work helps make other decisions much easier.
How much value am I delivering to clients?
How much time are you spending with each client? How much help do you give them as they make a decision with you? How much effort do you put into each and every individual that hires you?
The higher the investment of your time and energy, the higher your price point.
Be honest, here — take a tally of about how much time you devote to each client, and balance that with a reasonable estimation of how much your time is worth. ($20 an hour? $30, $50, $70, $100? Up to you!)
Revisit your pricing with an eye toward where you are right now in your business, and revisit in six months when you’re halfway to that “where do I see my business in one year?” point.
Ooh, and remember! Your pricing isn’t forever. (Really really, for real for real. It isn’t.)