This guest post comes to us via Temmy Ola, a copywriter who specializes in crafting crazy-awesome copy for entrepreneurs and online brands. She believes in love selling, and helps clients craft their core messages by lovingly connecting with their tribes on a deeper, emotional level to attract the right clients, make more money and live the life of their dreams. Download her bombshell kit for free here; bearing in mind that she doesn’t mind a little stalking on Twitter.
Sitting all alone in your home office, your stress level is slowly rising. I mean, you’re done with that genius of an idea you’ve been cooking up for a while, and you can’t wait to unveil it to the world as your ‘next big thing’. Palm sweating and all, you’re struggling desperately to find that ‘price’ - the right one for both you and your ideal clients. The answer is not that simple, you turn to Google and maybe other superstars in your niche, and then you see that same over-used cliché springing up every time – “Charge what you’re worth.”
Charging what you’re worth is misleading, to say the least, and shouldn’t by any means be the yardstick for pricing your products and services. Why? Because your worth cannot be quantified. Your worth equals everything that encompasses you – the summary of your years of experience, your level of education, the skills you’ve acquired over the years and everything you’ve invested in yourself, which frankly, is priceless. So instead of charging what you’re worth, charge what your product or service is worth. How to do that? Read on.
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Premium positioning
This doesn’t only apply to pricing models; it applies to every other aspect of your business. Position yourself as the expert. Don’t wait for permission to own your expertise, own it already. Premium positioning awards you the opportunity to charge premium prices. When people see you as the expert in your field, and are able to associate quality with whatever you lay your hands on, very few people will have issues with your pricing. -
Do the quality test
The next time you want to roll out a new product or service, or even a new launch, gather a group of trusted friends or colleagues to beta test for you. This is not for collecting testimonials, but for constructive criticism and feedback. They’re getting your product or service for free, and you’re testing the waters to know if you’re truly delivering value. After the beta testing, send them a follow up e-mail and ask a series of questions. This gives you an insight into how others see your product or service and enables you to add more value before you finally unveil it.
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Think like your (ideal) client
Chances are you’re not your ideal client. This is where you have to get creative. Step out of your shoes for once and step into the shoes of your ideal clients. How rich are your ideal clients? Will they be able to afford this? Ask yourself all these questions before deciding on a price point. Be careful here though, as most people will buy stuffs they may not otherwise be able to afford, if it addresses their “pain points” and they can clearly see the value. -
Keep track of your investments
Add up every little thing you invested to make that product or service a reality. This includes every dollar you spent and most importantly your time. How much do you need to break even and make profits? How many clients do you need to work with, without compromising on quality? Add all these together, and pick a price you’re most comfortable with.
Using the above mantras, pick a price that puts money in your pocket and value in your client’s pocket. Remember you’re in business to make money, and if you don’t, you’ll eventually become stressed out and burn out.
How do you set your prices? Tell us in the comments!
photo via tax credits // cc
I love this, Temmy. It is so important for professionals - especially service professionals to charge their worth and position themselves as the experts they are already. Love the encouragement in this post. You rock! ~N
Thanks so much Norma! I’m so glad the post resonates with you. It’s so sad how much we undervalue our skills when it comes to pricing, but the big shift is already happening
I personally believe it’s better to deliver quality and work with fewer clients ready to pay premium prices.
Love it! It can be hard to find that balance between offering what your clients need (and can pay) and what you need to charge, but once you find it, it’s amazing!
Thanks Erin! we can safely conclude pricing is the most common thing we all struggle with as freelancers. And like you so rightly stated, once you find that point of leverage you can expect amazing.
Great post, Temmy! I totally get hives when I think about “charging what you’re worth” On a good day, no one could afford me!
You really have to consider everything you mentioned to even start putting a real price together. Well done! xo
So glad you found the piece useful Jamie!
The “Quality Test” advice is gold. Another set of eyes is such a huge help.
Exactly! Most people focus more on testimonials, doing the quality test gives you the opportunity to know whether the price point you picked is actually worth it. Thanks Nicole.
YES
I am so tired of the whole “charge what you are worth”!
Fab article, thank you!
You’re welcome Maria. I for one know no one can actually afford what I’m worth
That concept is rather misleading!
Love your beta test feedback idea - if your service is 1-on-1 coaching which can only be done over time though, do you just give 1 sample session?
Yes Sophia, due to the nature of 1-on-1 delivery, pick about 3 to 5 beta testers, coach them only once! (One session for each beta tester), and let them answer some feedback questions about your coaching style and some other specific evaluations. Be sure to ask specific questions in order to get targeted answers from them.
Thanks for the reminder about beta testing — sometimes this is done with a focus on testimonial gathering rather than the quality of the experience for the client. I find knowing you can remove the prospective client’s problem in a smooth and seemingly effortless way, is one way to being confident with pricing.
That couldn’t have been said in a better way. I try to put a strong focus on the feedback I get from beta testers. It’s much more important than the testimonials, anyone can come up with a bunch of testimonials, but at the end of the day, it’s that ‘wow factor’ you deliver to your clients that matters. Thanks for your insight.
Great article! I’m a mixed media artist andI always get a bit sad when I see people charge money for originals that wouldn’t even cover the cost of materials, much less the artist’s time, expertise and uniqueness. It undermines that artist, and at the same time it also undermines every other artist working in the same field, because it’s telling people ‘this is what this type if work is worth, this is what you can expect to pay’. It’s still hard to put an exact price on certain things (especially art!) but this post gives me lots of starting points for figuring out the right price for me.
I’m so glad the post resonates with you! And I quite understand the frustration and loss of credibility that comes with under-pricing. This is really sad. You really have to start from somewhere to attain that balance. Thanks!