How to Set Your Own Prices
Aug 21, 2021Pricing is an emotional concept for most business owners. As strategic and entrepreneurially-minded as you think you are, pricing your offerings can be a tough go.
The first time I ever sent a proposal off to a potential client, I remember being terrified. To me, that $100 invoice represented my first big project, so it felt like a big deal, and I was so worried they were going to say no. I imagined scenarios where they responded angrily about how expensive my rates were or that I should be ashamed to charge as much as I did. I was so consumed with worrying about whether they’d hate me, even though I knew it wasn’t likely that they’d respond negatively at all!
The truth is I don’t even remember what happened with that proposal. I can’t remember whether they ended up hiring me or if they even responded, but the point is that I remember that feeling, the emotions behind sending off a proposal after self-valuing my worth and the work I’d be performing for them.
Now that I’ve been in business a few years, I’m sending off proposals pretty regularly, and for a lot more than $100, and I’m not the least bit terrified. It’s still emotional, but a positive experience because I know that my services can totally change the trajectory of someone’s life and business, which often is a big part of their life! I love what I do, and I’m fully confident in the value.
Why do people undercharge for their work?
There are many reasons some may undercharge for their work. I’ve undercharged before if I was really interested in a project for more than just monetary reasons and wanted to offer the potential client a deal, either as a break or a thank you for booking with me. I’ve also seen others undercharge as a way to appeal to a lower bracket of budget and show off their skills to a larger audience.
Sadly, the most common reason I’ve seen people undercharge for their work (and I know this because I’ve worked with A LOT of businesses and creative entrepreneurs as they build their business from the ground up) is a lack of confidence and belief in what they have to offer. If you can’t sell yourself on what you’re offering, how can you expect anyone else to want to invest in you?
Reframe your mindset
The takeaway that I try to instill in my clients and my audience is to believe in yourself and you will make more money AND have more fun doing it. I really, truly believe that.
Pricing is still emotional for me, but as I mentioned earlier, it’s a positive thing. I get excited to share my prices because I’m fully confident they reflect my value and I know they’re perfectly suited to my exact audience.
Not sure how to get to this level of confidence as you price your offerings? Here are a few strategies/action steps I regularly recommend to my clients to help them develop a pricing structure that suits their business:
- List the features of your offer. This includes tangible elements like an itemized list of deliverables or resources included in your service or product.
- List the benefits of your offer. Beyond the tangible elements, what is the intangible value of this service? What sort of lasting impact or repeated outcome does it promote?
- Now, as you’re looking at these two lists for your offer, go with your gut in determining a price that feels good to you. It should feel worth your time and accurately reflect the value of what you’re offering as you see it. If you want to use a pricing strategy, bring math into the discussion if that feels right to you and break down the numbers and profit.
- With that final price, just go for it. Move forward in full confidence that your prices are fair and accessible to the right people.
If you’d like to chat about pricing your offerings, I’d love to talk strategy with you! Shoot me an email or send me a message here!
