Episode 2: What Can Make Or Break Your Business: Pricing
If you've never been involved in the process where you have to put a price on something, the process can handcuff some, whereas for others, they approach it with ambivalence.
If you've never done it before we'd love to help you. There are tools and techniques you can use and there is also a degree of research that must be taken into consideration if you want to get it as close to "the best price", as possible.
So what are the tools?
If you are selling a specific product you initially have to factor in your cost(s). Factor in any necessary labor, and from there you may have to look at specifics. Specifics include such things as your rent/utilities, shipping and other items that require you to spend your money to make that product or products possible.
If it is more complicated than that, and let's say you and your skills are the product, it is a little more difficult but still relatively manageable. Chances are there is probably someone already doing what you're doing in some capacity or another.
So do what I do. I call it shamelessly stealing. Call up two or three of these people or businesses and ask them what they charge. But remember, pricing is relative to your locale, so unless you are offering your service over the internet or you aren't limited to your locale, locale matters a great deal.
Being the new kid on the block, you may need to keep your prices a little lower to start, until you can build a clientele. The difficulty for most here is undervaluing their service. Because your skill is always with you, you can convince yourself that it is of little value to others. But that is simply not true. Let me show you what I mean.
If I knew where to find specific things on the internet, things that would take the common person up to 2 hours to find, would you pay me 40 bucks to find that for you? How much do you value your time? Or, let's say you are skilled as a seamstress. The tendency would be to think that hemming pants or stitching a hole in a shirt is pretty easy. And yet for someone else, paying you to fix that would be really valuable.
Pricing your product or service can literally make or break you in the business world, and giving that process ample time and research makes all the difference.
Your skills and abilities, if you’ve had either or both, it is very easy to undervalue either
Is your skill set/abilities of value to another person or another company
What do I bring to the table
What do I need to learn
Perspective is immeasureable
Looking at each business and analyzing and asking specific questions and steering a business in the best way to hopefully bring success
Pricing consultation/service can be difficult, so you need to do your research. See what the market will bear and deliver value for your specific expertise
Once you establish your price, live and believe that is the price, and deliver based upon that price
What am I offering that is different from others to separate me? Am I able to sustain that
Sometimes, who you are, your morals, your values, may be what people want
Take your ego out of it
How do I figure out the cost
Don’t let information overwhelm you
Price specific breakdown