How to Price Your Product or Service

I am compelled to write this blog because not a day goes by where I don’t see a post in one group or another asking for advice on pricing.

Often these posts go something like this:

‘I am launching [new product or service], it will consist of [details of what it is] and I am thinking of pricing it around [£XXX]. Does that sound right to you? I’d love some feedback’

Or:

‘I’ve been asked to do a piece of work and wondered what the ballpark figure is?’

Please let me start by saying: I get it.

I totally understand why this might seem like a great idea – you’re looking for reassurance, you don’t want to be greedy and maybe, just maybe, your ideal dream client is reading it and snaps up what you’re offering. But it is not a good idea. Allow me now to explain why…

There are five main reasons:

1. Comparisionitus – a nasty affliction where the sufferer becomes convinced that other people know more than they do and have more authority over something than they do because of a perception of more success or more knowledge. I’m making light of it, but it’s actually quite serious. When we compare ourselves to others we are submitting to the idea of competition and actually, this is a really outdated idea in business. Why does what other people charge matter? We don’t need to charge the same as what other people in our industry charge… when you think about it, who made up the industry standard?

2. These posts don’t have enough info for me, or anyone else to have an opinion! Yes, we might know what the product or service is, and we might know who it’s for, we might even know some more details like how it’s being delivered or the time taken to create it, but we don’t know its true value. That would be personal and the true value of something comes from the transformation it will bring us. And because we’re not given this information (which is challenging to do in a single post) we don’t know if we need what’s on offer, which leads me nicely to point 3…

3. Are we your ideal client? These posts often appear in groups with tens of thousands of people in. Yes, all those people have something in common but it’s not very likely everyone who answers your post is right for your product or service.

4. Other people’s money stories. Everyone has money stories, things we are telling ourselves about money that impact our relationship with it. These stories fall under the category of limiting beliefs – they’re not true but they block us from the best course of action. When you ask in groups for other people’s pricing opinions you are basically asking for their money stories. ‘Cheep’ and ‘expensive’ are completely subjective terms. Consider a white T-shirt…they can cost from £1 to £1000, who is anyone to say what is right or wrong about that? It’s the same for your product and service. It’s more important that your pricing strategy is aligned with you and your money stories…even better if you can identify the stories that are blocking you and remove them, keep reading for more on this.

5. Money is not the deciding factor when it comes to making a sale. We put so much emphasis on it, but it is not everything. What really matters (linking back to point 2) is the transformation your product or service brings and how purchasing it will make your client or customers feel. We buy emotionally. The money doesn’t actually matter (if you’re shaking your head at me right now, that’s your money stories).

You’ve got this far.

I’ve convinced you that asking in these groups is not the best course of action but you’re still in the dilemma of what you should charge for your new exciting thing! Don’t worry I’m not leaving you high and dry, keep reading for my how to price your product or service tips…

1. Identify your money stories and remove the ones that are not serving you and your business. I talk more about money stories here.

2. Choose a price you believe in. If you’re telling yourself ‘it’s too much’, or ‘people won’t pay that’…guess what? They won’t!

3. Consider your needs. Your situation is unique to you and no one else. Consider what the pricing needs to be to fulfil what you want from your business.

4. Move away from ‘price per…’ models – this pricing model completely under (or de-) values your expertise and leads you down the competitor mindset. Whatever your business, you have a product (yes even service based businesses) and that’s what your clients are buying.

5. Work it through with a coach…this is not getting advice, that’s not coaching. A coach will ask you questions to help you release your money blocks, they will help you identify what you want to achieve and create the belief you need in your pricing strategy to succeed.

It’s all about you feeling confident and content with your pricing – this energy will transfer to your clients.

This is something I feel really passionate about and something I love helping my clients work through. If you’re reading this, I’m pretty sure you have a pricing dilemma and so is now the time to explore working that through with a coach?

We can explore your options in a free call – book here.

Not quite ready for that? Click here and get your hands on my free eBook with 9 immediate actions to manifest more money.