Episode description
Episode description
In the episode I answer the following frequently asked pricing questions:
1) Is there a formula for pricing or do I just need to guess my prices?
There is a pricing formula! In this episode I answer 7 questions and this is my most popular - Is there a formula I can use or should I just guess my prices? I also put together a Free Guide that will take you through the Pricing Formula. If you’re a visual learner (especially when it comes to numbers) I think you’ll find it very helpful.
(answer inspired by business finance hero Shanna Skidmore)
2) How do I price correctly when everyone else in my industry isn’t?
Stay in your lane! There is more to this answer, but basically, I just encourage people to not look at the competition, but rather, look at the data and the facts. To run your business and for your business to be sustainable you NEED to price properly.
3) Should I list my prices on my website?
I encourage you to get in front of your potential buyers in a conversation through email, over the phone, or by skype. If your prices are on your website, you may deter some people from even contacting you. These people may actually be willing to pay your price after you take them through a nurturing sales process. In a nutshell, you want to have as many people enquire as possible to have the best chance at converting the most people into high paying clients. Inside the episode, I give some ideas of when you need to have your prices on your website, but these are only in unique cases.
4) How should I price my services to friends and family?
Short answer - just be consistent. It’s up to you!
5) Do I have to raise my prices to make more profit? Or is there another way to make more money?
You can do other things such as decrease the costs in your business. The other option is to get more clients, but that’s not usually the desired outcome because that means more time investment. Basically you have two options to increase profit - increase price or decrease spending.
6) If I know I need to increase my prices, what do I do with current clients on retainers?
Communication is key and incrementally increasing your prices by 10-20% (no more) at a time. It’s also important to show how you’ll be adding value with the price increase. This will reassure current clients. Obviously, if you have one-off clients, you cannot increase your price.
7) What if people don’t book me because my prices are too high?
You don’t want everyone to book you. The aim should be to get 30% of your enquiries turning into clients. Not everyone. Not everyone will pay your price and that’s ok.
Links mentioned in this episode:
> Pricing Formula - This pricing formula guarantees profit every time.
> Hannah Murphy & Jess Shipton Episode
> Copywriter - Elise Hodge
> Copywriter - Ashlyn Carter
> The School of Beautiful Business - Waitlist
> Two Warm Hands - Ceramicist
> My facebook group “Make It - The Creative Business Podcast”