Pricing your services can be one of the biggest challenges you face as an entrepreneur. Your emotions and how you feel about yourself can really get in the way of making pricing decisions that are right for your business.
Let me ask you a couple of questions:
- Do you get anxiety when you think about raising your prices?
- Do you compare yourself to everyone else; just to be left feeling deflated and crippled with self-doubt?
- Do you ever feel like you’re not good enough to charge what other professionals in your industry charge?
In the 5 years I’ve been a business coach, there is one huge barrier that cripples my small business owners when it comes to pricing: lacking self-confidence. That’s right. Confidence is the #1 secret to pricing yourself like a boss. No matter what I teach or what skills I provide my clients, if they lack confidence, they will never see their true potential and charge what they’re worth. And you’re worth it, my friend, I promise.
So, how does one get confident? We all have a million and a half reasons for why we may lack confidence. Although I am unequipped to unravel all the reasons that may impact you, I can break it down into 2 simple truths:
- The first truth is that confidence comes with practice. The more we do, the more confident we are in our abilities.
- The second truth is the more knowledge and understanding we have, the more confident we become as well.
What this means in a nutshell is simple: the more we practice and gain knowledge, the more confidence we have in our abilities. Now we are getting somewhere! So let’s talk through some actions you can take to ditch that self-doubt.
- Know Your Numbers: The best way to gain knowledge on pricing is to KNOW YOUR NUMBERS. Pricing should be based on data and facts, not emotions. Knowing what you need to make, the cost of running a business, and understanding your financial goals will empower you with a wealth (get it?) of knowledge that will inform how to set your pricing.
- Know Your Ideal Client: In order to price and sell your services, you need to understand who your ideal client is and what they VALUE. Pricing is not about what you think your clients want, it’s about motivating your clients to buy your services based on what they desire most. Get knowledgeable about who they are, where they shop, and what they spend their money on. All of this information will help you understand their buying behaviors so you can create pricing and packages that are irresistible to your ideal client.
- Stop Comparing Yourself: Understanding your market is important when evaluating pricing, but searching through competitor’s websites and creating pricing based on what your competitor does is not a long-term strategy. The truth is, every business is different. What YOU need out of your business as an entrepreneur is going to be different than others. Comparing yourself to everyone else can be an emotional pitfall and limit the potential you have to set your business apart from the rest. So, close that laptop and stop surfing the net. Trust me, it will be liberating.
- Practice Your Skills: As I mentioned before, the more you practice, the more your confidence will soar. Evaluate your skills on a regular basis and grow your knowledge by seeking out regular training or mentoring to fill in the gaps. It’s okay to ask for help! By focusing on developing your skills, you will be able to face your clients with confidence and success.
Taking the time to get knowledgeable about your business and grow your skills will help you ditch that self-doubt and price yourself with unshakeable confidence. You wanted to become an entrepreneur to share your passion with the world, so pricing yourself to keep your business sustainable is an important part of living out your legacy. Now go take action to grow your confidence. I believe in you, friend.