One of the most common challenges that we come across in our chats with women in business, is pricing – also known as how to charge what you’re worth. Women, in particular, are often prone to under-valuing themselves. We find it easy to compare ourselves with others and allow the Imposter Syndrome to creep in. And what about that one potential client who told you your prices were too high? Sometimes we even struggle to understand why someone might pay for what we’re offering, in the first place. Our service or product is ‘just’ this… or ‘only’ that.
Any internal chatter along these lines is automatically going to create doubts in our minds, and these doubts will eventually do nothing but hold us back. But actually, when you run a business, the numbers are everything – and if those numbers aren’t high enough, you don’t actually have a business. Knowing how to charge what you’re worth is, therefore, absolutely crucial.
5 steps to charging what you’re worth
Factor in your ‘actual’ costs
This is the first logal step when we’re pricing our goods or services, and it’s something that we’ve discussed on this blog before. But it’s important that we take the time to calculate all those costs. It might not cost you very much to add a bit of extra sparkle to an individual product, but over time, all that extra sparkle adds up.
Understand the value that you bring
This second point is all about understanding what you’re bringing to the table, and it’s one that so many people forget about! Probably because most of us struggle to value ourselves highly enough!
There are so many things that can contribute towards that ‘value’. Value can be created through your products, for example, and through the raw materials that you use to make them. Do you use organic flour in your wedding cakes? Or something closer to a supermarket special? And what about your history? Your qualifications? Your connections? All of these things have led you to the point where you are today, and should be reflected in how you value yourself and your offering.
Believe in the prices that you set
Whatever you decide to charge people, it’s so important that you believe in your pricing. For example, you might set out to offer a premium service, but if you only charge an average price, the quality of your service might be cast into doubt. Likewise, if you charge too much for something, nobody will buy it in the first place. So do whatever you need to do to justify your prices in your own head, before you try to communicate them to others. Do your research. Ask people what they would be prepared to pay. Even do a full breakdown on a spreadsheet if it helps!
Be consistent – and follow through
Once you’ve understood the value that you bring, and set your prices, it’s vital to be consistent and to follow through. It’s natural that we worry about how people might perceive a change in pricing, but remember – if you communicate your value well, the right people will buy from you, and those that don’t appreciate it, won’t. But it’s the former that are your ideal clients. Not the latter.
If you’re still unsure about how to charge what you’re worth, get some help! A great business coach will be able to work with you to break things down. And also help you to challenge and move past any mind monkeys who are holding you back!
Hopefully these tips will help you to calculate the value that you bring to your clients. If you want to read more about finance, check out our Definitive Guide to Starting a Small Business, and if you’re still struggling to charge what you’re worth, book in a free Discovery Call with us. Let’s chat about how we can help you to move forward.