How you set the prices you charge your clients can certainly impact your business, and in a bad way. Here are 4 tips.
Many of us have gone through a mental and emotional tussle about what to charge clients.
We may anguish over questions like these:
- Is this price too much?
- Is that too little?
- WIll I drive away business?
- Will I attract the wrong clients if I charge too little?
It can be like playing an internal game of Goldilocks - this one is to hot, this one is too cold, this one is just right.
Here are maxims to remember when considering your client pricing. I use these with our clients at Lights On Business.
1. People pay for perceived value that solves a problem they have.
They are paying to get assistance with a problem or issue or lack. They more they perceive you are uniquely able to help with that, AND, the more they need your solution, the more likely they will be willing to your prices. People are more willing, in my experience, to be willing to afford solutions that are needed over material that is nice.
Let's say a person is choosing between business coaching what will help create a growth flow of new clients for them and it costs $5,000. Now let's say, they could otherwise spend $5,000 on buffing up their currently functional website. If they are at a point where they need clients and they see you are all about Client Finding, they are more likely to opt for that service over a website makeover for a site that currently works. That might wait.
2. It is very difficult to charge more than what you believe you are worth.
The first thing some gurus do with a new client is to have them raise their prices. It seems like a quick win for the new client. Added revenue, right? The problem is, I often see that this does not work.
The new client doesn't yet believe they are worth it. The coach may, but until the client does, they will struggle to enroll business at the new pricing.
Here is how we work with clients to some up with pricing adjustments.
3. Do some checking so that you know what the lower price levels are and what the higher price levels are. specially if you have experience in your field, you probably want to use above average pricing. So, ask, is your pricing higher than lower? You don't want to be priced very low and then compete for offering the lowest price. That's a no-win race to the bottom.
4. We need to check what pricing our client can accept themselves. What do they believe that they are worth. I am still surprised that coaches don't effectively address this. Saying bluntly to your client, "you are worth more, charge more", is not addressing it!
I use a unique, quick and simple intuitive test to check in with their energy to check on proposed pricing changes.. It's called the "Drop Down Test". I literally imagine them swallowing various price points and then detect with them, which ones swallow and which ones get stuck.
You know the saying, it has to pass the gut check.
Over time and with mindset work, this level can certainly can, and does, change. In the present, this gives you a starting point for pricing that feels authentic to you and can support you in your growing business.
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