One dilemma that business owners frequently face is pricing their services.
If you aim high, will that put people off?
If you go low, will it cheapen your brand?
How do you strike the right balance? While the decision will ultimately depend on both your skills and chosen sector, there are some factors every entrepreneur can consider:
While you don’t need to be a maths genius, you do need to have a clear understanding of the company finances. How healthy is your cash flow? What are your targets for the months and years ahead? And how does your current income align with that?
If you’re not on track, it may be time to review your pricing. (P.S. If the idea of digging deep into the figures fills you with dread, a professional business consultant could help you to make sense of it all. In fact, numbers are my speciality, so get in touch today and stop losing sleep over those spreadsheets.)
Now’s not the time to be modest, so make a list of all the things that set your business apart from the crowd.
What skills, qualifications and experience are you bringing to the table? Do you offer a premium product, or has your business won awards? Are your customers leaving rave reviews?
Many business owners fall into the trap of undervaluing themselves, especially when they’re starting out – so take a moment to remind yourself why your company is so damn great.
Now that you’ve identified your strengths, it’s important to convey those clearly to potential clients so that they see good value for money. Your website is often the first thing people come across, so make sure it looks professional (this doesn’t have to cost a fortune, either – there are some very slick templates available these days).
If you’re pitching directly to clients, you could include a bio outlining your company’s achievements, a detailed breakdown of what your offer includes, and some testimonials from other customers singing your praises. All of a sudden that fee you’re quoting seems incredibly reasonable.
While you don’t want to be swayed by what others are doing, it never hurts to regularly review the market, so take a look at some similar businesses online.
If your competitors are charging way more than you, that’s a clear sign you’re selling yourself short. And if they’re not, it doesn’t automatically follow that you need to slash your prices – just remember to clearly demonstrate your worth to the client.
While you don’t want to be changing your prices every five minutes, it makes sense to assess them periodically. There are many valid reasons why you might need to charge more, from inflation to expansion.
You could also consider introducing a range of packages at different price points – for example, you might have a basic ‘bronze’ version for those on a tight budget, a standard ‘silver’ bundle with more benefits, and a premium ‘gold’ package with lots of enticing extras.
By appealing to a broader range of clients, you’ll be boosting your chances of success!
Set properly, it can help to scale your company in the right way – but get it wrong and it can quickly bring your business to a standstill. Hiring a good consultant can help to make the whole process less daunting, enabling you to start charging with confidence.
By taking the time to nail those numbers now, you’re laying the foundations to build the business you always wanted.
For bespoke advice on how to unlock your company’s potential, CONTACT ME TODAY.
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