How Much is That Puppy in The Window?
Since today is widely known in the world as a superstitious day bringing bad luck; I thought I’d bring you some GREAT news around pricing and another superstition around setting prices for your business.
One of the common questions I often receive from clients is “how do I set my pricing”? By far, it can be one of those trial and error formulas or it can be based upon the value you offer. I typically like to have a mix of both; and STRONGLY advise my clients to do the same. A lot of times in the beginning, business owners may tend to offer a low price to get started in offering their services or products. In addition to that strategy, business owners tend to look at their competitors and match their price or even offer a slightly lower price as well. Big MISTAKE. Here’s why. You don’t know what “they” based their pricing on and how much perceived value they offer either. In addition, lowest price can also be perceived as “not as good” to a prospect. Another reason you should not offer the lowest price is doing so will put you in the box of “low price offering” for your overall branding. For example, how do you want the public and prospects to view you? Like Walmart or Nordstroms? Like Big Lots or Macy’s? Lastly, if you base your services on price alone, you are missing a huge piece of what you truly offer….which is YOU!
So, how do you price your services? Follow these three steps:
- Know the numbers – Some of us women tend to shy away from the number and numbers in general. Slap that FEAR in the face and get REAL with the number. What is the number? The number is what do you need to earn at a MINIMUM each month? I used this approach early on for my situation, since I was laid off. I merely needed/wanted to match what I was making in my Corporate America role and/or what my monthly financial obligations were. Financial obligations = rent/mortgage, utilities, phone, car note, insurance, loans, credit cards..etc. Sit down and add these amounts to get your bare minimum. This will give you a REAL number to focus upon and from there we can begin to build you service packages accordingly.
- Service Offering – For the sake of this post, I’m going to assume you want to be a Macy’s or Nordstroms type of business. In doing so, I want you to visualize why you like to shop at either location. I can tell you for me, there’s a certain level of customer service, valuable product, continual communication, friendly staff, new product offers and customer appreciation. I could on and on…but I think you understand where I’m going. Those aspects listed are values that a customer feels, experiences and appreciates. How can you create an experience…a high level feeling for your clients in your business?
- Confidence Sells – Do you know you are the best at what you do? If so, exude that confidence with others, so they want to buy whatever you’re selling. Confidence is alluring and contagious. This could also be under the mantra ‘do one thing and do it well’. By doing so, you become more confident in what you offer, while others start to tell of your expertise. Expertise and specialists invoke a higher dollar amount. For example, would you want a court appointed attorney or would want the very best counsel to represent you? Enough said. Be confident in your skills, talents and abilities. You’ve worked hard for those degrees, certifications or you’ve built an impeccable track record by having glowing experience. Use each of these areas to boost your confidence in what you offer and provide.
In closing, you never want to set your prices according to what the ‘outside’ world sees as low. For those prospects that are price shopping will always want to know “how much is that puppy in the window?” Instead, as a business owner you should know that you are a full bred pedigree that comes with shiny coat, relentless love and value for a lifetime. Set some top dog prices that offer impeccable value. Kick that other pricing superstition to the curb and create your own good luck! Happy Friday 13th!