EPISODE 04

Pricing Strategy: Helpful insights and reframes

Most of us struggle with how to figure out what to charge for our services. And that nagging fear… “Are people going to actually pay for it?”

We also sometimes have ethical concerns and conflicted feelings about making money on the thing we are selling.

In this episode, I share helpful insights and reframes related to the hesitations and hang-ups we feel around pricing.

show transcript

Hey there. So today’s episode is gonna touch on the questions, concerns, hesitations, and hang ups we feel around pricing. It’s something I’m discussing with all my current clients at the moment, and it’s something that comes up in some way, shape, or form with every client I work with, whether they’re just starting or they’re evolving their business model, pricing, and packaging. So, yeah, I’m gonna touch on some of those key concerns and share some helpful insights and reframes that have helped both me and my clients on this topic. The clients I work with are, like me, service based solo business owners, which means we’re selling something that is invisible, an invisible service.

Right? And and we’re the ones responsible for putting a price tag on that invisible service. So right at the start, the question and fear that we struggle with is, how the heck do I figure out what to charge for this? And are people actually gonna pay for it? And that’s before we even get to our uncomfortable feelings around marketing and selling that service.

Now if you listen to the hype online, people are always preaching to charge what you’re worth. And of course, that’s an incredibly flawed and toxic idea because, you know, our inherent intrinsic self worth as humans is priceless. But what we can do is figure out what our work is worth, and that’s a number that you can set strategically and thoughtfully based on multiple factors. What are those factors? Well, I do have a detailed slide on this, and if you send me a personal email or DM, I will send it to you.

But it includes 14 factors in 5 categories. The categories are market research, knowing your numbers and goals, value factors, strategic considerations, and gut check. Because at the end of the day, ultimately, you’re going to still have to pick a number, and that number has to feel good for you in your gut. But taking time to inform that decision, you know, by carefully considering the price from multiple angles feels and works better. Pricing, you know, it’s very emotional.

It comes with all this fear and emotional baggage. You could even get into looking at the unconscious feelings you might have about money given your past experiences with it, given your parents’ relationship with money, how you’ve been socialized to think about money, and on and on. But there’s no doubt pricing is hard even on a practical level. It’s tough to know if you’re overcharging or undercharging, and what is quote unquote fair when the fact is as soon as you charge just €1 for your service, that already excludes a certain percentage of the global population who cannot afford it. So no matter what price you choose, whether that’s, you know, $10 or $10,000, there will always be 3 groups of people.

Some that think your price is low, cheap, or like you’re undercharging. Some that will think your price is fair and just right, and some who believe your price is too high, expensive, or unaffordable. So price is relative to the buyer, the buyer’s situation, market location, personal perception, and values, meaning what they value enough to pay a certain price for. And, you know, this realization was super helpful helpful for me because it helped me realize that I can’t possibly appeal to and appease everyone. That is impossible.

I have decided to set a certain price for my signature program. And whether or not you recognize the value of what I’m selling is not entirely under my control. And that’s because value is determined by the buyer and what they perceive my service is worth, and price is simply a number I set as the seller. Now as sellers, we can certainly influence the perception of value in how well we describe and present the value of our work and our message and marketing. And the price doesn’t have to be a random number we pick out of thin air because, you know, that number can be set thoughtfully and strategically based on multiple factors from the going rates to your level of experience, to your financial goals and costs.

So when I’m talking with a prospective client and I tell them the number, the price, they will either see the value or they won’t. And we’re either a good fit to work together or we’re not. The price itself is not a scary thing, it’s just a number. Now I know that that’s much easier said than done, but I try to think of it that way to take the emotion out of it. Of course, I also know and believe the value is there, but that mental reframe may help you as well.

In fact, I met with a prospect a couple days ago, and I told her my price for my signature program, which is currently 2100. But I also told her in the same breath that the value is really more like 5,000. Now I don’t usually say that, but at this stage, it’s what I honestly believe because I know how deep and personal and transformative my process is. And I know that this particular person, this prospect really wants to ensure that she’s making a smart investment. But again, back to this question, how can you know for sure that your price is exactly right?

You can’t. You can’t. You can consider the 14 factors and then pick a number, but there is no right price that you can just look up somewhere. By the way, wouldn’t that be nice if there was? But on the more positive side, when we do feel frustrated about this, when we get too much in our head about our price, do try to remember these two things.

Number 1, people love to buy things. We forget that sometimes. People love to buy things, but they hate being sold to. Or rather, they they hate being sold to in a pushy, sleazy, or manipulative way. Have you ever walked into a store and someone immediately jumps in your face and is like, how can I help you?

And you might even need help but your first instinct is to say, just looking. Right? As solo business owners, we get worried that people won’t wanna pay us, but we forget that shopping and buying stuff feels good. It literally releases dopamine. Buying things can make our lives easier, more enjoyable, or provide some kind of transformation.

Buying things can you know, help us fulfill certain universal human needs. Emotional needs and desires. Think about any large investment you’ve made for something that you really value. How did that make you feel? Did you feel excited to buy it?

You see, clients aren’t investing in you as much as they are investing in themselves through you. Yeah? The second thing to remember is people make buying decisions based on a whole lot more than just price. I know a copywriter who just won a big contract with a company last week, and and she was the highest priced amongst the people that company were considering. So besides price, people are wondering about things like relevance.

Does this person help people just like me with problems just like mine? Do I like their style and approach to solving those problems? Do I trust that they can get me the specific results I’m seeking? On the personal side, do I like this person? Do they have similar values?

Do I click with them? And is it clear how this person or program is different, better, or unique compared to the others? So if a prospect doesn’t buy, don’t just assume it’s because of the price. The price itself actually sends out a signal. Now my husband and I, we recently bought a new espresso machine at home.

And I gotta tell you I was amazed to find out the huge range of prices for these. I had no idea. From €60 to €3,000 and even more. Of course, we naturally think that the highest or higher priced thing is higher quality, and the lower priced thing is lesser quality when that may or may not be true. So offering a low price for your service may actually repel some buyers.

It may send a psychological signal that the service is low quality. Now, on the ethical side of things, often my clients will tell me that, you know, they’re really having conflicted internal feelings about making money on the thing they are selling. Does that sound familiar? Especially people in certain sectors like life coaching or spirituality, very ethically minded sectors like green businesses, people who work in allyship, or people who are just deeply concerned and conscious about wanting people from a range of economic backgrounds and means to be able to access their service. And what do I say to all that?

Well, actually a few things. Okay. 1st, many of us live in this economic system called capitalism, which of course is deeply flawed, exploitative, and doesn’t work out for everybody. So by definition, it’s an unfair system. Yet we’re supposed to come up with a fair price?

As one of my coaches, Erica Tebbins expressed, how are we as solo business owners, as small business owners, supposed to bear the burden of that on our shoulders When we live in the system ourselves and have to find a way to survive and thrive within that system ourselves, we alone cannot solve that problem, right? But now that’s not to imply that there’s nothing at all we can do. We can offer sliding scale pricing, or offer a variety of services priced at different price points, or offer payment plans, or scholarship opportunities or valuable free content. And once we get to a certain level of success, we can give back to our communities in various ways as well. Through this podcast, which is free, I’m offering valuable insights and advice.

On my free resources page, same thing. And for me, that feels really good and a way to legitimately serve those who cannot afford my services. But we cannot make this mistake of thinking that making money and being an an ethical entrepreneur who is doing good in the world cannot coexist. It can and it must. Now before I close this episode, one last thought around this fear we have.

Will anyone even wanna pay for this thing I’m selling? Especially if it’s not a need to have item. To that I say, look around. Are others making money on that thing? Ask around.

Can you do some market research? Some would argue that, for example, life coaching is not a need to have, and yet for countless people, the value is priceless. And the market stats indicate that it is a $1,400,000,000 industry. But know this, what you’re selling is not valuable for everyone. But it is very likely highly valuable for a specific group of people who want exactly what you have to offer.

And how will you ever know if you don’t put it out there and try? Focus on delivering amazing value and effectively describing the value because your price relates to both, and your success depends on both. Finally, don’t forget that pricing is personal. Your price can change, and there is no exact right price, only the price that’s right for you.

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