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If you’re a coach or service-based business owner, chances are you have questioned your pricing or (even worse) discounted your services! Sounds like you? Keep reading I am sharing with you how to confidently price your services as a female coach or service based business.
Let me share with you, you’re not alone. It is the number one largest concern when it comes to business owners. 99% of my clients come to me not feeling confident in their pricing structure. I even see it consistently being questioned in Facebook groups. (Keep reading as to why asking in Facebook Groups is the worse idea… ever!)
Why is it challenging too confidently price our services?
If you own a retail store, you typically sell products at a fixed price. They call this MSRP (manufactures suggested retail price). Brand’s do this to keep their pricing consistent within the market.
But when it comes to you and me being service-based businesses, we have to evaluate our services and put a price on it. We’re not selling a physical product that someone walks away with and for some people this creates a lot of mental anguish when it comes to attaching a numerical price tag to it!
I am going to break down solid ways that you can confidently price your services. By the end of this article, you should be able to have a solid pricing structure for your services.
Evaluating market trends to confidently price your services.
One of the quickest ways to competitively price your products within your industry is by a little research.
Before you start writing down your competition. I want you to think about your superpower traits. What do I mean by superpower traits– they are the unique traits that only YOU posses. No one else has them!
If you are able to combine your superpower traits into your business, you become an incredible force!
First, write down the traits that differentiates you and separates you from all your market competition.
Second, make a list of businesses that you view as competitors. Looking at your competition you are going to look at three areas:
– What products/services do they offer?
– The “value” they bring to their clients? (Superpower traits)
– The price of the service.
By answering those 3 questions you are able to come up with solid competitive prices.
However, this isn’t the sole way of laying out your pricing structure. Or you may not have a lot of market competition! If so, keep reading!
Your customer will give you insight of how to price out your services.
Going directly to “the source” (i.e. your customer base) will help you determine your pricing structure. Believe it or not, this is one of the most overlooked areas when it comes too pricing.
A great way of finding this info is by either doing a discovery call or any type of clarity call. Let’s say you have a new service you are launching. To ensure that you are on the right track, you may discount the 3 sessions to ensure your customer is receiving value, you may need to tweak some areas and this is a great way to receive testimonials. At the end of the call, you can ask your customer how much they would pay for the service. (If you are not 100% sure what you should be asking your customers, I compiled a list and this lays out your entire marketing strategy!)
The shocking part about this, most people will tell you a higher range than what you would have priced your services at yourself!
When you are going to the source, this means your actual customers. People that will do business with you! Do not go into a Facebook Group and post a question of how much should you charge! Chances are these people are not your target customers. You will always be disappointed. Save yourself, just don’t do it!
You are not pricing your actual services you are pricing the end result you create.
This was a total a-ha moment for me as a business owner. We are not technically pricing out the tasks we are performing for our clients. Nope, you’re putting a price on the results they receive from doing business with you. It is all about how you make their lives better!
If you are selling jets, you are not going to be selling them the ins and outs of the actual airplane. You are selling them convenience, to be able to jump on a plane and go anywhere without having to go through long security lines at the airport. You are offering them an opportunity to go from the thought, “Damn the beach would be nice right now” to sitting on the beach with a cocktail in their hand in 4 hours! It is all about the end results!
Let’s talk about some end results you could offer your customer:
- They don’t enjoy doing the task that you are able to perform. (i.e. cleaning a home, marketing strategy)
- Oh no, they don’t know how to do the task that you are able to perform. You are looking really great right now! (graphic design, launch a website, develop a marketing plan )
- You’re able to get them to the end result quickly. If they would do it on their own it would take way longer and hit tons of obstacles to derail the end results.
- Saving them time. Which allows them to spend more time with their family, or to travel, or to just lay by the pool!
- Money.. can you save them money?
It is all about understanding the end results that you offer your customers and the value they place on the end results! I hope you had an a-ha moment to and you have a massive break-through with your pricing structure!
Confidently Pricing Your Products On A Psychological Level
There are some known psychological aspects when it comes to purchasing products. The easiest one to understand and implement is tiered pricing. Tiered pricing is having a few different pricing options for your service or product.
If you are a service based business, you can offer your 1-on-1 service at $350. You could offer a package of 4 sessions at $1200. You could do a 6-month agreement at $6,000.
If you are selling a course or group coaching. The 3 different tiered pricing options could be:
- L1- $250 for the basics.
- L2- $500 contains the basics plus some bonuses.
- L3- $700 could be everything in the previous two levels plus three 1-on-1 calls.
We find that buyers more times than not, will purchase the middle pricing. They gravitate towards the middle tier price. Can you create tiered pricing within your services and focus on the middle tier, knowing that it will be the one the majority of your customers will choose?
The above are solid ways for you to confidently price your products. Let’s talk about what I find is the real culprit when it comes to pricing your products with female business owners.
When it comes to confidently pricing your products, believe it or not, mental confidence is a large factor.
I see this more times than not in female business owners, and it is understanding the value and end results you bring to your customers. And being able to own it! At this point, you have solid evidence on how to price your products. Just looking at the end results alone, if that doesn’t make you smile when you think about how you help your clients.. I don’t know what will!
But as women, we tend to undervalue ourselves and our business! I am here to tell you, it is doing yourself a disservice.!
The other factor I see when it comes to confidence and pricing are old limiting beliefs around money. I have a high percentage of clients who come to me with negative thoughts around money and they don’t even know it!
They are telling themselves these old stories they have made into truths. Putting their own money perspective onto their clients. Sadly, it is sabotaging their business and more so their profits.
Some common limiting beliefs are:
- “No one will purchase from me”
- “would anyone pay me to do __”.
- “No one wants to pay for services.”
- “Everyone wants things for free.”
- “I’m not good at business.”
- “Not good with money.
If you have limiting beliefs around money, the first stage is recognizing those thoughts. Being able to turn those negative thoughts into positive ones.
No one will purchase from me. Turns into- There are 1000’s of people that need my services, I am able to bring them value and change their life/business.
Everyone wants things for free changes into… My customers understand the value that I bring and are willing to pay premium prices.
Speaking of charging premium prices… put them out there! There are many luxury brands that people are willing to purchase every single day. Louis Vuitton’s handbags is a great example. People are willing to pay more money for it being luxury instead of purchasing a less expensive handbag.
The deal is, you have to confidently put them out there and back them up both mentally and never discounting!
By analyzing your market trends, understanding the end results you provide, and having insight on the psychological part of tiered pricing… I know you will be able to make solid decisions on pricing your products.
Once you come to a solid pricing structure, the biggest factor moving forward is knowing it and being confident. Stop discounting you and your business with old limiting beliefs that no one will buy. There are people out there that need your help and currently searching for the solution you provide.
You got this… if you found this article helpful, please share!
If this article resonates with you and you are looking to hire a strategist (me) to help you launch products to market demand and work on your limiting beliefs book a 15-minute clarity call now. We can discuss your business goals to see if I can help you get to your “end result” quicker and easier!
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