Have you ever felt like you’re undercharging for your services? You’re not alone.
Many entrepreneurs struggle with pricing, often tying it to their sense of self-worth.
But here’s the thing: basing your prices on how you feel about yourself is a recipe for disaster.
Let’s dive into why this approach falls short and explore a more effective strategy for pricing your services.
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The Problem with Worth-Based Pricing
Pricing based on your perceived worth is inherently flawed. Why? Because worth is a feeling, and feelings are notoriously fickle. One day you might feel on top of the world, ready to conquer anything. The next, you could wake up feeling like an imposter. If you tie your pricing to these fluctuating emotions, you’ll end up with inconsistent rates that don’t accurately reflect the value you provide.
The Value-Based Pricing Solution
Understanding Long-Term Impact
To truly grasp the value you provide, consider the long-term impact of your services. Let’s look at a real-world example:
A client I worked with in 2016 was consistently earning $130,000 annually. After our collaboration, her revenue doubled to $260,000 in the first year alone. That’s an additional $130,000 from a $1,500 investment – an 86x return! But it didn’t stop there. She continued to maintain this growth year after year, resulting in an extra $1.04 million over eight years.
Assessing Short-Term Impact
While long-term results are impressive, short-term wins can be equally powerful in showcasing your value. Consider these examples from my recent mastermind program:
– One participant achieved her entire annual revenue goal in just 90 days.
– Another tripled her monthly revenue consistently from the second month onwards.
– A third made back her entire investment with a single sale.
Applying Value-Based Pricing to Your Business
1. Career Coaches
Think about the lifelong impact of helping a client secure a significant raise. That increase in income will compound over their entire career. What’s the value of that transformation?
2. HR Consultants
Consider how your services prevent turnover, increase productivity, and improve workplace satisfaction. Calculate the financial impact of these improvements for your clients.
3. Branding Consultants
Reflect on how your work increases brand awareness and perception. What’s the monetary value of enhanced brand recognition for your clients?
4. Your Industry
What kind of impact do your services make on the lives of your clients on short and long-term basis?
Steps to Implement Value-Based Pricing
1. Analyze Past Client Results: Look back at your previous clients and identify the tangible outcomes they achieved through your services.
2. Quantify the Impact: Whenever possible, put a dollar value on the results you’ve helped clients achieve.
3. Consider Long-Term Effects: Don’t just focus on immediate results. Think about how your work continues to benefit clients over time.
4. Gather Client Testimonials: Use client feedback to support your value proposition and justify your pricing.
5. Adjust Your Pricing: Based on the value you provide, set prices that reflect an equal exchange of value.
Remember, undercharging doesn’t serve anyone. When you price your services too low, you risk burnout and frustration. You owe it to yourself and your clients to charge what you’re truly worth.
Implementing value-based pricing isn’t just about making more money (although that’s a nice benefit!). It’s about creating a sustainable business model that allows you to serve your clients at the highest level without sacrificing your own well-being.
By shifting your focus from worth to value, you’re not only setting yourself up for financial success but also ensuring that you can continue to make a meaningful impact in your clients’ lives and businesses for years to come.
The resources mentioned in this episode are:
????Enroll in ‘Price with Purpose’. https://briseeley.com/pricing-strategy This course will teach you value-based pricing strategy that guarantees not only profitability but also the satisfaction of charging what you truly deserve.
????Visit https://briseeley.com/free to get free access to DEFY REALITY: The Female Entrepreneur’s Guide to Achieving Her Audaciously Ambitious Goals.
????Join the free entrepreneurial community at https://briseeley.com/community for opportunities to connect with powerful women aiming towards big dreams and visions.
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