How To Set Prices For Your Service Based Business
I hear this simple little saying everywhere. But let’s unpack it a little bit…
Really, what you charge has nothing to do with your worth. Your worth is separate from any pricing conversation and should never be impacted by money.
Sure, I get what the phrase is trying to say. Make sure you increase your prices enough to match the value your client is receiving.
Ok, so how do you do that? It’s tricky, I know.
It’s true that so many people (especially women) have money blocks or low confidence that keep them from charging the prices they could (and should be).
But here is the rub…
If you don’t fully believe in the prices your charging and can’t own it fully 100%, you aren’t ready to charge at that level yet.
Hear me out. What if I advised you to start charging $1,000 more for your premium package? As a neutral third party I see the value in your services that you are blind to and I know there is a market for you at the increased price level.
BUT, I’m not on a sales call with you. You’re on that call alone. Just you and the prospective client. And if you can’t quote your new, higher prices without your vibe totally shifting, stuttering over words and getting super awkward… your prospect is going to feel weird energy and the conversation isn’t going to go as well.
Yes, you are worthy of higher prices, but your mindset hasn’t caught up with you yet.
That’s why, instead of ‘charging what you are worth’ I want you to ‘charge in your stretch zone’.
Your stretch zone should feel slightly scary, but in an empowering ‘I’ve got this thang’ way.
The key to this working is that you don’t stay there long term. This part is important! You have to keep working on your mindset and your confidence to increase your prices.
For example, once you pick a number in your stretch zone, you might sell a couple things at that level and realize you are the bomb diggity and need to raise your prices again.
Perfect! Raise them. It doesn’t matter how long it has been since you raised your prices before you raise them again.
Remember you are in charge of your business and you aren’t limited to one price change per year. Raise your prices often if that feels good.
Slow and steady wins the race.
By using the ‘charge in your stretch zone’ method you will be able to start bringing revenue into your business now because when you are talking to a prospect you will sound like the confident business owner I know you are.
You can deliver a ton of value, realize you are more awesome than you even thought, and rinse and repeat. Having your own business, and having to set prices and make the sale… it’s hard work. But the joy of having your own business and knowing you are in charge of the ship? Totally worth it.