What is the right price for your service?
It’s a question that troubles many consultants, coaches, trainers and other experts. For a large number of them, pricing correctly is an activity based in mystery. Whenever i ask a service professional how exactly they set their prices, nine times out of ten i get a blank stare.
When i follow up and ask what are the issues they ought to consider, in setting their fees, many stumble and fumble.
Is it any wonder that many of us are making fundamental mistakes in this arena?
Here are the top 3 errors i see professionals making:
Mistake 1. – Setting prices as a result of their ‘general feelings’ about the prevailing economic conditions.
Mistake 2. – Setting prices that are limited as a result of comparing themselves to other providers of the same service.
Mistake 3. – Setting prices as a direct result of their personal discomfort with asking for money.
Do you do any/all of these?
Mistake 3, in particular, is a huge issue for a large number of professionals.
There is a common thread running through these errors. Is it immediately apparent to you?
At their base, all three have the professional as the centre point for pricing. They are orientated on the pro. and their own issues.
Critically, they are not fundamentally focused on the potential value to be created for the prospective client. Why?
Are you mispricing? What are the issues for you? How do you deal with these?
I will be writing much more about this, specifically on how to deal with it, in the private newsletter (sign up box is top right on this page).
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