One of the first things I discuss with clients is their pricing. In nearly all cases, their prices are set too low to create a sustainable business they won’t grow to hate.
When I ask how they feel about their pricing, I get a range of reactions:
“They are ok, I guess.”
“I don’t think anyone would pay more.”
“I need to raise them, but I’m scared I’ll lose my clients or no one else will hire me.”
It isn’t unusual for my clients to even be reluctant to talk about their prices!
Why? Why Is talking about our prices and money taboo? Why do we feel the need to apologize? Why shouldn’t we be just as proud of our pricing as we are of the work we do?
Why we aren't our ideal client
Let’s break it down and examine the pieces. First, it is easy to imagine ourselves as our ideal client. After all, we love what we do, right! We’d be a perfect client! But! In most cases, we aren’t our ideal client at all. Take a moment and jot down the differences between you and your ideal client.
As an example, I love SEO and social media, so it wouldn’t make sense to hire someone like me to do what I do because I enjoy it and it is fun. My clients, on the other hand, would rather hand it off to me or have me help them through it.
I’m not a fan of most online courses, but one of my most popular “products” is my Build Your Marketing Muscles (an online course)!
On the other hand, I’m not a very crafty person, so paying an artist for their creation or paying someone to create a costume for my youngest is not only a great way for me to spend my money, it makes my life lighter and less stressful! And I have the added benefit of supporting another small business.
Remembering that we aren't our ideal client, especially when we're starting out and charging too little, is vital. I think it is even more important if we’re already coming from a place of money scarcity and feeling as if any sale is a good sale.
Can you "give back and still have a business?
My clients have good hearts and a desire to reach out to people who couldn’t normally afford their services. This is a wonderful thing, but in many cases, it isn't sustainable and is a fantastic recipe for burnout and exhaustion.
A good client doesn't want you to exhaust yourself! In fact, they need you to take care of yourself because they believe you are good at what you do (after all, that’s why they hired you, right?)
Can you still “give back” and have a business? Absolutely! But consider waiting until your business is stable and you have a clear idea of your boundaries so you can give back in healthy, long-term ways. I give myself permission to offer some free work in the form of consulting here and there, but draw the line at social media management because it is so time consuming.
Yes, I completely understand the desire to make what we do accessible to everyone, but you can't be so kind to others that you are damaging your health & relationships by running yourself into the ground trying to serve everyone.
You don't control someone else's finances
We need to let go of the guilt or responsibility around whether someone can afford what we do or what we sell. If someone can’t afford us, that’s ok! It doesn’t make us a bad person for sticking to our prices just as it doesn’t make them a bad person for not being able to afford what we offer. It just means they aren’t our customer (right now). If what you offer is worthwhile to someone, then they will pay it. If not, it isn't worth it to them and that isn't anything we have control over.
I doubt a Land Rover salesman feels bad that I'm not a Land Rover customer - no matter how much I want one (ok, I don't actually want one, that was just the first car name that came to mind!).
You must cover business costs and expenses
You also need to think about the cost of running your business. Those costs include taxes and expenses and that can really add up! If you aren’t covering those very basic things with your pricing, while still leaving enough left over to live on, you won’t be able to sustain your business. Or you’ll grow to resent it because it costs more money to run your business than you make.
How do you stand firm in your pricing?
Be clear around what you offer and the process. If, like photographers, your work involves a lot of behind-the-scenes action the client may not see you’ll need to be extra clear around the benefits and upfront about the amount of work you do on your own to get the end result the client loves.
Focus on the quality of your work and the benefit to the client.
Believe in yourself and what you bring to your client – not every client will be the right fit, but you can be the perfect fit for the right client.
Practice saying “These are my prices and I’m happy with them.” – yes, you’ll feel silly at first, but that is all you need to say to someone questioning your prices and your value. You don’t need to pull out a spreadsheet, a Venn diagram, and give them an hour lecture on how you arrived at your prices (no matter how tempting it is!)
Finally, and this is going to sound a little out there, but stay with me!
Imagine your business is a tree with deep roots that are well cared for and strong. When someone complains about your pricing, imagine it is like a gust of wind. Imagine your business tree swaying in the wind as the gust of wind passes by.
Neat image, right? No harm to the tree, no harm to the gust of wind – it just wasn’t a good fit right now.
Musings about marketing, social media, and small business.