How to charge your worth
Deciding how to price your products and services can be really tricky in business, especially as a solopreneur, because so often our sense of what we “can” charge is tied up in how we feel about ourselves.
So how do we do it?
- Charge what our peers are charging
- Pick a number out of the sky
- Undercut the competition
- Price higher to imply we are better
- Get folks to name their price
- See what folks can afford
It is a minefield, especially when you have Guru’s out there saying, “Charge your worth, charge your worth”
The thing is YOU ARE PRICELESS, so how can you charge your worth?
People will pay what they believe your products and services are worth to them…and this is no reflection on your worthiness…or at least it shouldn’t be. But it trips so many of us up, because we have all kinds of money stories, money values, money beliefs that come into play.
“I just want to help people”
“I want it to be affordable”
“I don’t want to price people out of being able to take part”
But also on the other side of the coin
“If I am too cheap people won’t believe its any good”
“If I am too cheap I will attract the wrong kind of people”
“If I am too cheap my family and friends will think I am just playing at this business thing”
When you undercharge in your business it can lead to burnout, it can lead to frustration, it can lead to you being under-resourced, which has a knock on effect to the viability of your business moving forward.
When you overcharge the same is true, you can switch to overdelivering and having terrible boundaries, you can spend a lot of resources trying to convince people to work with you, and you can attract a lot of negativity “HOW MUCH????” and maybe not even attract any clients at all.
So you can see why getting it right for you is important.
In my What Kind of Business are you REALLY Running Business Audit participants shared how they felt about being recompensed in their business, and the results don’t surprise me. Less than 17% said they felt happy with the ROI, 50% said they did not feel like it was a fair exchange.
Running a business is a labor of love, requiring countless hours of hard work, dedication, and personal investment. But we have to question is it worth it? What is the cost to me? What is the cost to my clients? What is the cost to the rest of the world? Like seriously.
I know I have made this mistake many times over in my business.
My business too Fat to Run was based on micropayments, large volumes of clients, low ticket pricing, massive transformation.
In January 2020 I had 600 new clients come through the doors paying £5 for a 5 weeks to 5K online running programme, around 60% of those clients went on to buy a further product with me. So you can see how this model, if you continue to get the numbers can easily lead to running a 6 figure business.
My business coaching business is different though. The level of investment has to be higher because the rewards are higher, and the resistance to doing the work is higher.
My lowest price product is my how NOT to be Broke Sales challenge which is currently £69 for a weeks worth of training…and I feel like I am totally undercharging for the value that the challenge gives to clients, which is why I have decided that from the next cohort of this it will be priced at £99 which is still super affordable if you are a solopreneur who is serious about making money in your small business.
My highest priced programme at the moment is £6365…and sometimes I think that is probably too low, but at the moment it is where I am happy with it being.
The fact there is no right or wrong…high ticket, low ticket, mid range, Primark or Prada prices…only you can decide.
But 5 questions you can ask yourself when pricing your products include
1. How much do I want to make?
Look at your annual goals, your monthly goals and the potential lifetime value of clients who come into your world via this product…does this pricing make it easier or harder for you to reach that target?
2. What is the cost of me delivering this product or service?
Employ a full cost recovery approach, looking at a percentage of all of your running costs, the actual cost of delivery, plus your time. What is the real cost of this…if it works AND if it doesn’t
3. How does my pricing strategy for this product or service play into my other products and services.
Is the purpose lead generation, is it to cover your bills, is it to pay for a luxury item? How does this part of your business fit within the whole ecosystem of your business offerings and brand.
4. Where does this product or service sit in the marketplace
If people are comparing similar offers what conclusion will they come to? Are you happy to compete on price, or are you able to up the value so that it feels like a no brainer price for the right client. Do your ideal clients understand what they are getting for what they are paying.
5. What is the cost to this product or service not selling
How many units of this product or service do you want and/or need to sell, and what is the cost of it sitting on the shelves not being bought? What will you make it mean if for whatever reason this product or service doesn’t take off with your audience base?
It is crucial for business owners to recognize their worth YES and take proactive steps to ensure they are adequately compensated. But remember that only you can decide the right price structures for you and your audience.
If you’re an entrepreneur questioning whether you are receiving fair compensation for your hard work, take a moment to reflect on your own experiences. Are you satisfied with your current situation? What steps can you take to bridge the gap between effort and reward?
Remember, it is within your power to shape the trajectory of your business and strive for the balance you deserve
If you haven’t taken my business audit yet, please do…it will help you understand if you are running a loss leading business, and what steps you can take to move in to a more profitable, more sustainable way of running your solopreneur business.
want to join the how not to be broke sales challenge?
Come and join a bunch of other ambitious solopreneurs as we figure this stuff out and make some proper money in our business.
Using the principles from my new book How NOT to be Broke, (COMING SOON) plus my sales activation process “A Grand in Your Hand” we will spend a week not only exploring our position on pricing, but testing it, and generating income and momentum in our solopreneur businesses.
We kick things off with a workshop on Monday 25th at 2pm, and then its a week of training 12pm-1pm from Monday 2nd October to Friday 7th October.
How much money could you make?
Looking for a business legacy strategist?
If you are a solopreneur doing all of the doing, AND all of the thinking, and have got yourself in a bit of a pickle. I might be able to help. As a business legacy strategist I help solopreneurs to get clear on their vision, their strategy and the best tactics to deploy, but most importantly I help them turn their ideas into sustained, successsful action…and before it’s too late and they have run out of time or steam to reach their full potential.
I have been a solopreneur for close to 30 years, and have been supporting freelancers, artists, coaches, creatives, experts, speakers and sole traders of all kinds of proffesions for more than 20 years. I am a keynote speaker on the topics of productivity, purpose and profits and the author of the book How NOT to be Broke.