One of the great things about being an entrepreneur is setting your own prices and rates. What do I charge? and What am I worth? can both be sticky questions. On one hand you don’t want to undervalue yourself. On the other you don’t want to overestimate and have static sales. So how do you determine your prices and see consistent profits? Read on:
Price Point #1
What are you worth?
Take a realistic view of your product and service offerings. Are you comfortable with the pricing? Would you purchase from yourself? Is your price proportionate with your time/experience in your field/business?
We all want to start out charging top dollar for our business and offerings. Consider the questions above though, if your experience doesn’t merit the cost, you’ll be stuck constantly lowering your prices just to make a sale. Have a final cost in mind and then create a plan to reach that number. Focus on building a reputation that will back that price up. In time you’ll be able to command it with no problem.
Price Point #2
Am I undervaluing myself?
Just as harmful to your business as overpricing, undervaluing can cheapen your whole brand experience. Do your research and determine a fair market. Allow yourself some leeway but going the cheapest route will make potential clients wonder why.
Price Point #3
Consider the market.
Always be aware of competition. You may not have the exact same prices, but your should be aware of the range of the market, as well as different price points. This will help you to determine your ideal clients and their habits.
Price Point #4
Going back to the first point, businesses take time to build their reputation, following and support. If you are a fairly new entrepreneur, do not become discouraged by slow sales. Consistently build your content and showcase the value.
Price Point #5
Give it away for free.
Not everything :). One habit I have that works great for both of my businesses is giving away information. A potential client should have enough knowledge to make them comfortable that you are worth your price. Chefs can blog recipes, business coaches can give out sales tips, personal trainers can provide mini workouts, etc, etc. Often to command the best price, someone needs to feel as if they are getting the best knowledge or expertise for their money. Imagine if the free information you give is effective, what would they receive for full price?
Those are my tips for today, hope they were helpful. Reblog, share, or comment and let me know if this helped.
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Happy brand building!!!!