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SpinDistribute.com Article Directory
« Back to articles from category "Advice"The following article was published in our article directory on October 12, 2017.
Learn more about SpinDistribute Article Distribution System.
How To Make Your Pricing Strategy Simple And Easy
Article Category: Advice
Author Name: Linda Clay
It very well could be one of The most stressful decisions you have to make in your business .. "What the heck should I charge?" Does it make you shudder just a bit? It certainly made me at first!
There are so many things to take into consideration when you are trying to set your prices, things like:
The competition.
Your own skill set.
Your perception of your skills. ( yes, it is totally different from the item above)
What your market will pay.
Your location.
And More!
Because it's quite a bit to think about, working it out can seem like a huge hurdle you can't quite get past.
Of course, there are some strategies you can employ. One popular method is to use a calculator such as the one found on BeeWits. It's a great way to quickly tell you what you need to be charging to reach your income goals and it's a great place to start.
Great! You now have a place to start; but where do you go from here? How do you delve into all those other areas and figure them out?
It's time to put on your detective hat and do some digging. Grab yourself a notebook and let's break things down:
Your Competition.
Are you ready to start playing detective?
It can be a challenge when a lot of service providers and coaches don't publish their rates. First of all, pay attention to their websites and social media, in addition, ask some pointed but discreet questions and sign up for their mailing list. It will help you key in on their rates.
One thing you'll want to keep in mind is: be very realistic about who your competition is.
Don't fall into the trap of undervaluing or over-selling yourself. In other words, make sure you are comparing 'apples to apples'. Your comparison should be to another provider who shares the same skills, market and track record, not someone you strive to become.
Your Skills.
Basing your rates on your skills can be easy if you're in certain fields. As a result, getting certain certifications or taking certain educational programs will allow you to charge a certain rates. Consequently, pricing will be easy for you.
If that hasn't been your path, you'll need to put on the detective hat again and take a solid look at what you can really claim as a skill.
Look at your track record:
Do you have testimonials or case studies that prove yourself by helping former clients?
Have any of your former clients moved on to bigger and better things after working with you? (It really is a good thing!)
Once you review these areas, it could indicate you should consider a higher price range than you first thought.
"Do not compromise on the quality and your customers will not negotiate on the price." ― Amit Kalantri
Your Market.
Now that you put together some of the pieces needed to set your prices, It's finally time to look at the last area: your market.
Your market is the crucial piece of the pricing puzzle as it has the final say.
Any first year economy student will tell you .. the price of anything lies where 'what the buyer is willing to pay' meets 'what the seller is willing to accept.'
So the question returns to 'Who is your ICA'? If you missed my recent post on simple tips to identify your ICA, you can check it out here.
Is your goal to give newbies a helping hand and guide them down the path to success? If it is, you'll need to accept that you'll have lower paying gigs. It's not a bad thing at all .. everyone has to start somewhere. But you do have to acknowledge and accept it.
Is your goal to target a more established and stable market? If it is, a much higher fee is a must because that market will actually expect a higher price and won't find 'value' in a lower-cost provider, whether it's jelly beans or coaching.
Most of all, remember .. pricing is never set in stone. As a result, it's one of the most flexible things in your business. If you find you're attracting the wrong market or none at all, YOU can change your rates.
In conclusion, you find yourself working too hard for not enough return, it's probably time to give yourself permission to raise your rates.
Most of all, it's your business therefore you're the one who calls the shots!
"Price is what you pay. Value is what you get." – Warren Buffett
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