In the world of online business, standing out is definitely the name of the game. You have to find ways to connect with your ideal client on a deep, authentic level. Reason being – there are likely a ton of other options they have to work with. One of the ways we can connect with and sometimes attract our ideal client is through effective pricing strategies.
Today I want to speak to some of the mindset blocks that we often have behind pricing our services. I struggled with a lot of these things myself and ultimately wasted a lot of time by charging way less than I was worth, thus keeping me completely off their radar. This is time I could have been working with dream clients.
Here are a few of the mindset blocks you may be facing when it comes to pricing and how you can begin making pricing mindset shifts:
1. My service only takes me ____ hours to do, so it should be cheaper.
When we’re faced with this limiting belief, we have to remember that while it may be easy for us, it’s not easy for them. This is why they’re coming to us. For example, you offer a service to help people get their HoneyBook workflows set up. It only takes you 3 hours, so you may have a hard time charging 4 figures for this. However, if I were to try to do that, it would take me a couple days to figure it out. Therefore, I’m paying you for the EASE.
Don’t think of it as “it’s only 3 hours”. Think of it as “I worked for months to get this down to a science so that I can do it in 3 hours. They are paying not only for my time, but for my expertise.”
Which brings me to my next mindset block and the pricing mindset shifts to get over it.
2. I only started in this niche recently. I’m no expert.
Reflect back on what got you started in this niche. Was it years of experience in your corporate role? Was it experience you had in your previous niche that made you shift? Was it your educational background? Having experience actually working with clients in your niche is important. However, do not let that discount the fact that you’re an expert. Plus, the work you do gets results for the ones you work with. Price accordingly. Sometimes we’re quick to check the competition and price based on what they offer, but do they also have the advanced skill set that you do?
3. I’ve always had this price and it feels comfortable. I don’t want to lose clients.
If you’ve been in business for several years, this may apply to you. I work with my clients to help them make their offers more scalable. During this time, they often have to reevaluate their pricing. Some of us have been in business for three years, yet we’re still using the same prices from when we first started! It’s essential to allow your pricing to grow with you. Otherwise, you’ll never be able to do less work to meet your revenue goals. Also consider different offers, business ventures and projects you want to start. What if you always have to work with 15 clients per month to meet your revenue goals?
Sustainable Pricing Mindset Shifts
When I first started offering VIP Days to help people build their team, they were priced at $1497 for a 4 hour intensive. This was a great price for me starting out. It allowed me to really build my confidence as an entrepreneur. Plus, I could begin to get testimonials. After a few clients raved about their service, I went up to $1997. Then $2497. At that price I was booking 2-3 VIP Days a week! I realized that on my discovery calls I was converting almost 100%, and after doing so many, I was getting burnt out.
But if I truly wanted to be able to scale this offer to provide a sustainable lifestyle for myself, I knew I needed to up the price. Of course I was afraid to lose clients, but I had to listen to what they were telling me. They literally told me to raise the price, they told me “Wow I would have paid 10k for this.” Needless to say, after camping out at $5000 for about 8-10 clients, I have finally raised my price to $10k for my VIP Day, and it’s an amazing feeling. We have the ability to ask our clients these types of questions and make pricing decisions based on their feedback. They’re the perfect ones to ask, because they’ve paid you once before.
Questions to Add to Your Testimonial Form to Help with Pricing Mindset Shifts
Try adding one of these questions to your testimonial form:
- If you had to put a dollar value on this service, what would it be?
- Knowing what you know now about my service, how much would you have paid for it?
- Was the service worth the investment that you paid?
This will give you the most candid feedback possible and you can use this as leverage to defeat and work through your pricing mindset blocks. You may lose interest from some potential leads that have been watching you when you change your prices, but that’s okay. You are elevating your service and brand, and naturally the type of client you attract will elevate too!
The Importance of Pricing Mindset Shifts
All in all, pricing feels like a scary game sometimes. We know we want our rates to be competitive, but also something that feels good to us, and worth our time. I want you to know that pricing yourself too low doesn’t serve anyone.
It doesn’t serve you because now you’re having to do a lot of work to make it happen, and it will lead to burn out. You’ll also live in a perpetual cycle of self doubt because what you’re receiving doesn’t match the quality of work you know you’re putting out.
And it doesn’t serve the client because they likely aren’t getting your best, nor are they able to get the full transformation they’re hoping for and looking for.
Price what your expertise is worth and what feels good to you. When that changes, your price should change too. After you work with several clients successfully, consider changing your rates. If every single person you talk to converts, consider changing your rates.
If you are considering raising your rates so that you can afford to build or grow your team, then you should definitely apply to attend my exclusive private training. Here we will cover some of the biggest shifts you’ll need to make in your business and team in order to really scale sustainably, pricing included. Yes, that’s right- pricing your worth can even help you get to a point where you can hire a team (or get a bigger one) to help you!
Once you’re at that stage, you’ll also want to consider HoneyBook’s proposal software, which will help you get paid faster than ever (it combines online invoices and online contracts in one).
I’m cheering for you!
Plus, 5 more posts you might like:
How to Raise Your Prices as a Service Provider
How and When to Discount (and Still Profit)
An Inside Look at the Psychology of Pricing
Pricing for Profit & Positioning Your Value
What You Need to Know When Setting Your Prices to Nail Your Pricing Strategy
