(And rob your clients of the results they deserve)
Setting our rates and sticking to them is one of the biggest challenges we face as small business owners.
Here are three pricing mistakes I come across all the time in my work with clients, plus some hot tips to avoid them.
1) “Offering a low rate will get me more clients”
This is not true. It will just get you different clients.
Ones who may not be totally committed to change because they have less skin in the game and are less likely to do the work between sessions (which you can’t do for them – sorry) to get the results they desire.
We have a wide range of price points for anything that’s on sale, with people willing to pay at each point along the continuum. This is our money set-point. We might be enticed to go a little above for something special or a bit below for a bargain, but generally speaking we’ll stay within a range.
People will happily pay anything from 90p for a cup of tea in a Greasy Spoon to £30 and upwards in a posh London hotel, and all points in between and it’s the same with your services.
We naturally tend to value more what we pay more for.
And there are people who are not working with you right now because your rates are too low!
HOT TIP: You will not be able to sell something at a price point you’re not congruent with. Find a way to uplevel your money set-point, recognise the true value that you offer to clients (which many of them will describe as priceless) and learn how to communicate that value to your ideal prospects.
2) “They can’t afford it”
Have you ever been in a sales conversation and decided within the first few minutes that “They can’t afford it, they’re never going to say yes to my full rate”? And before you know it you’re offering a discount or even quoting a lower rate without telling them it’s discounted?
I know you’ve done it 😉
Ever started working with someone at a ludicrously low rate that has you feeling a teensy bit resentful right from the start, only to have them rescheduling the next session because they’ll be on holiday in some far-flung place, or picking up a new car, or flying off to Paris for the weekend?
The truth is, you know little or nothing about their financial situation. They might have an inheritance in the bank, they might have received a large redundancy payment, they might even have a private income of some kind.
HOT TIP: Stop making up stories in your head and making the decision for them. They are adults. Be respectful, present your solution and your (rock solid) price if you’re a good fit, communicate the true value clearly, and support them in reaching the right decision for them. When you do this, you’re truly being of service and giving out the message that they are worth it.
3) “People are not spending in this economy”
If I had a pound for each time I’ve heard this, I’d be a very wealthy woman by now! And it’s so not true.
You only have to spend 5 minutes people-watching in any shopping centre or high street to know there is plenty of money in circulation right now.
If you’re offering a service or a solution that meets a real need, there are people out there who are willing and eager to pay for it. In fact they’re looking for you right now.
HOT TIP: Drop the stories, practice communicating clearly the benefits of the services you offer and take steps to make yourself more visible to the people who need them.
Over to you
This is just a small selection of the stories we tell ourselves about pricing that keep us under-charging and over-giving.
What stories do you tell yourself? And how do you negotiate a way around them? We’d love to know. Do share in the Comments below.
PS: Here’s a free resource to help you
We all have hidden as well as conscious blocks and beliefs about charging. Some buried so deeply that we’re just not aware of them at all.
Go here now and grab a copy of my free Quiz ‘Discover Your Hidden Blocks to Money & Success’. It takes minutes to complete and what you find might surprise you :-).