What is your first reaction when you haven’t made the amount of money you were expecting in your business?
This is a question I asked readers in my recent article about the essential need for a pricing strategy and strategic pricing in every business. Many would answer this question by simply stating that they would work harder and/or longer. Or perhaps that they need more clients or customers.
Would this be your reaction? If so, don’t worry. It is a common misconception ingrained in us from an early age. If you managed to catch that article, you’ll already know that the right PRICING is the key to working less, earning more, and building a profitable business.
Today’s world demands so much from us. More than we were ever designed to handle. And, here we are, day after day feeling overwhelmed, stressed, overworked, underpaid, undervalued, and inevitably fed up.
Be sure to check out that article before moving on to this one. It points out things that you may be doing (consciously or unconsciously) that are hindering your opportunities for true financial success.
Let’s now, however, focus on three proven ways to know that you’re actually using strategic pricing so that you can grow your business and at the same time have the lifestyle and freedom you’ve always wanted. Because let’s face it you can charge whatever you want, but is does that mean that you are using strategic pricing?
Strategic Pricing Indicator #1
Your Dream Clients Already Have Their Credit Cards Out
Often we get stuck in lowballing ourselves due to a couple of reasons. It could be because of imposter syndrome and that we don’t think we are worth more. It could also be a fear of scaring off potential clients.
You need to think about what types of clients you want to attract. At the end of the day, there will always be people out there that want a luxury service for the lowest possible price. You come to learn to see the red flags with this.
Does that sound like your dream client? Someone who wants the most out of you for the least amount of money?
This is particularly an issue at the beginning of any business when you’re just so damn grateful to have a client. The idea that ANY client that pays is a good client.
You quickly learn that the only person who gets stung in that situation is YOU and doesn’t take you long to realize that where you work, the work you do, and most importantly who you work with is vital to your satisfaction with your work. Enter strategic pricing!
We often forget one of the greatest benefits of working for ourselves is having the opportunity to say no and being really selective with the people we work with. You get to call the shots by using a pricing strategy that only attracts the right people, the most committed people, the most dedicated people, and the clients that are right for you.
Those willing to invest because they understand the value of what you offer are going to be the ones that see the greatest transformation with you and are more than likely going to refer you to other business owners, family members and friends.
You only want the best clients in your business and if your prices only attract the best you are doing something right!
Strategic Pricing Indicator #2
You Have Margin in Your Business for Growth
Growth? Who is she? When we’re stuck without a successful and strategic pricing plan, we tend to stay stagnant and stuck. You really want to grow your business and don’t quite understand how it hasn’t worked for you. Again, coming back to the realization that hard work doesn’t equal success.
Your current prices should be enabling you to take steps to grow your business. If they aren’t then you should be thinking long and hard about what your prices ARE doing for you.
If your pricing isn’t helping you move the needle forward in your business and helping you grow then you need to evaluate what it is that you’re doing.
You know the saying, if you aren’t growing, you’re dying.
It’s true in business as well, maintaining a business with no savings and no growth strategy is just not sustainable! You only have to take a look at the worldwide global economic crises we’ve been dealing with to see that.
How do you combat that in your business? Price for growth and profit savings.
If you can look at your prices and see that you have room to explore growth options, do it!
Strategic Pricing Indicator #3
You are Able to Pay Yourself a Salary (A Healthy One, Too)
Before we dive in here, I want to touch on something that I hope will make you feel a little better. Numbers. Boasted. On. Instagram. Are. A. Farce. We’ve all seen it, people spouting that they have a “5,6,7, figure business”. Our jaws drop…. How can that be? How am I still here and they are over there. This is not what these coaches and gurus are taking home every month or year. This is not the salary that they pay themselves. This is TOTAL business INCOME made.
I still see so many folks not paying themselves anything from their business. Any money they make gets poured right back into the business bills just to keep the business afloat. It’s a bit like that paycheck to paycheck cycle many of us have fought to break when working a day job, right?
This isn’t what we signed up for when owning our own businesses. It was supposed to be a way to create an income that pays more, and it can be.
Bottom line is that you have to be charging the right price and have strategic pricing to start seeing the results you want. There are only so many hours in the day, you are only one human. Your pricing needs to help you sustain yourself and your business. You deserve to be paid well for the effort you are putting into your business.
What will happen if you stick to lowballing yourself? You will come to resent your work and your clients as neither truly values your expertise.
Do you want to learn more about strategic pricing? You don’t have to do it alone! I have created a Pricing Masterclass to help you once and for all grow your business while paying yourself a salary and planning for the future. I am really proud of this masterclass as I know just how much it can benefit any business owner struggling in the stagnant cycle they’ve found themselves in.
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