Improve your Pricing, base it on your Worth!

As a Business Mentor, I often find small business owners Price themselves at “cost recovery plus a bit”.

The same business owners are often very busy and say they do not generate enough income.

They seek to better understand their true Worth to others and how to translate this Value into Price.

A plumber once said to me “I bring a wrench and 25 years’ experience in problem solving to each job”.

3 Key Pricing elements

There are 3 key Pricing elements a business owner needs to focus on to build a better business.

These elements will shape your communication with existing and when prospecting for new clients by translating “what you do” into “choose me and this is how your business will be positively impacted”.

The key focus is to change your mindset from a Transaction to a Value Exchange with clients.

First: Reflect and record the enormous experience you bring to the table.

Build your “Brag” sheet and privately convince yourself first of your extraordinary worth, your investment in building your experience. e.g.

a.   Time and training with an employer

b.   Study and qualification and ongoing professional development

c.   Real experience in getting things right and wrong

d.   Understanding the trends and do’s and don’ts (law, regulation) in your business/profession

e.   Setting up your business, taking a risk and developing a proposition that works

Second: Standing in the shoes of your current and prospective clients.

This will involve having a different conversation with a client than you are used to

f.    Developing a Value proposition based on your client’s problems and how you can resolve them

g.   Develop an Offer that talks to how your client will be impacted by using your services e.g.

• Better staff engagement (happy, retained staff with ideas how to improve things)

• Better client experience (repeat business and they become an advocate to new clients for your services) and

• Shareholder/owner experience (better margins/profit)

Third: Spend time re-thinking your Proposition and your Offer

NOT “What you do”...translate this into “What you will achieve for your client” and make sure it is in their language. 

This allows the client to join the dots between what you offer and what the Impact will be on their business      

How to you decide your price

So, what are you Worth and what’s your Price?

Pricing Formulae:

Demonstrate (first to yourself) the Worth you bring to the table

+ Talk the (problem solving) impact of choosing you in the language of your client

= Pricing more than you currently charge because you are Worth it!

Leigh Powell is a business strategist and mentor with Your Time Matters and assist small businesses to hone their propositions and attract and convert more prospects.

If you are looking for a rewarding way to grow your business and want to benefit from conversations that help you access the right connections and leverage opportunities, check out our YTM Membership and benefits HERE .

Receive a FREE gift of our conversation starters HERE when you subscribe to our event alerts