Pricing is one of the toughest things to get right when running a small business, particularly if you are selling a service. If you don’t charge enough you will slowly go out of business, charge too much and nobody will buy from you. It’s all about finding your USP (unique selling proposition). What is different about you? Really analyse what it is. Is it your experience? Is it your approach? Is it your service level? Is it your qualifications?
Many of my clients running a small business, panic when I tell them they should be charging more. They believe they will never get any new clients if they charge more. Many are vastly under charging. I mean really under charging! Think of it from the their own customer /client point of view. If it’s too cheap, it’s bound to be a cheap service, a really bad service or somebody unqualified to do the job or less experienced, right? Wrong! It’s normally a new business owner who lacks the confidence to charge what they are worth.
This is part of what I do, explaining to my clients, what the perception will be if their service is too under-priced and how people do not value anything that is ‘cheap’. When you are offering something that seems to be too good to be true, it attracts the wrong type of clients, those who want something for nothing, those who will be demanding and make your life a misery. And worst of all, you will become resentful servicing these people as you are not getting paid enough, during the whole process. When you are priced correctly, the right type of client will seek you out and buy from you effortlessly.
So the moral is, take a deep breath and review your current pricing (and review it annually). Don’t follow the crowd, don’t do what everybody else is doing, stand out, assess where you add value, where you give amazing customer service, where your talent stands out, where you go over and beyond your clients expectation and factor this in when determining your pricing. Trust me, the right people will buy from you (and come back and buy more in the future)!
Photo courtesy of Christiann Koepke on Unsplash