A while back I was working with a client who had priced her services based on what she felt was her worth at the time. She ended up signing several long term contracts at rates that were far below what her offerings were truly worth. Over the next few months, as she gained more confidence and clarity on the immense value she provided, she began to deeply resent those contracts. She was putting in far more than she was being compensated for. On today’s episode of ‘The Entrepreneur Coach Podcast’, we’re talking about why you should never charge your worth and what to do instead. Watch or listen to the entire episode here:
Watch the full episode here:
Listen to the full episode here:
Many business coaches advise entrepreneurs to “charge your worth.” But what does that actually mean? How do you quantify your worth, and how do you build a sustainable pricing strategy around something as fluid as your self-perception? The truth is, you can’t. Basing prices on worth is a recipe for resentment and lack of fulfillment.
So if not worth, then what? The key is basing your pricing on the concrete, quantifiable value you provide for your customers. The amount of money you charge should be in equal exchange for the solutions, transformation and impact your product or service generates.
Let’s look at some examples to illustrate. Say you have an at-home nail kit business. You would first tally up all the hard costs – manufacturing, shipping, packaging, etc. But the price also needs to account for the added value you provide customers in convenience, time savings, and cost savings compared to going to a salon. Research shows most nail salons have a 30-65% profit margin, so make sure to build in healthy profits atop your expenses.
For service businesses, calculate your overhead costs like software subscriptions and contractor salaries. But again, that’s only one component of pricing. You need to consider the tangible transformations you spark for your clients. Over my 9 years of coaching I have the data to back up the incredible impact I have – doubling or tripling revenue on average. My pricing reflects and honors that value.
So now it’s time to evaluate your own business. Go through each offering and make sure your prices align with and exchange for the value you provide, no less. If there are any areas where you feel undercompensated, now is the time to adjust. Doing this exercise will help you feel more confident and fulfilled in your business as you progress.
I invite you to let me know how this perspective on pricing resonates with you and your business model. When you get pricing right, everything else seems to fall into place – from your own sense of value to the types of customers you attract. Remember, we got into business to feel passion and purpose while being fairly compensated for our gifts. Aligning pricing with value makes all of that possible.
The resources mentioned in this episode are:
🔥Visit https://briseeley.com/reset to get free access to The Reset, a five-day business makeover to evolve your business from acceptable to exceptional.
🔥Join the free entrepreneurial community at https://briseeley.com/community for opportunities to connect with powerful women aiming towards big dreams and visions.
🔥Subscribe to the Entrepreneur Coach podcast for more upcoming episodes and valuable wisdom.
🔥 If you need support on your entrepreneurial journey to strengthen your resilient mindset and set yourself up for success in uncertain times, consider submitting your application to work with The Entrepreneur Coach Bri Seeley here: https://briseeley.com/apply
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