When it comes to pricing services, there is one major (and far too common) problem that prevents service providers from charging what they are really worth. It’s that all-too-common belief that “I am not a salesperson.” Though it may be true (not everyone is) this belief often leads people into “fear selling” where they sell their services for way too little out of fear of not making a sale at all. Well, it is time to stop! By implementing a slight shift in perspective you can charge what you’re worth AND make a sale!
Pro tip: If you are charging what you are worth and you lose a sale, the reality is that the potential client is probably not your ideal customer, anyway!
Here’s how traditional pricing discussions go:
You talk to a potential client, and you explain what you can offer, how your service works, what he or she can expect (how many calls/emails, phases of work, length of contract), etc. Then, you say “My rate is $XXX.00.”
At this point, the potential client either says yes, no, or — the kiss of death — maybe.
A Pricing Discussion with a Shifted Perspective
Let’s turn that around, and rather than focus on what he or she will get from YOU, take a look at what they will achieve after hiring you!
Let us use a business coach as an example. One of the perks a client will get is an increase in their profit! So, If your coaching fee is $1,000 per month, but you can show her how to increase her sales by $3,000 per month, then your price is inconsequential. She’ll earn it back three times over, not only while you’re actively coaching her, but for the rest of her business life.
What you’re doing here is not talking about the cost of your coaching, but rather the cost of not hiring you. Because if she doesn’t work with you, she’s losing $3,000 per month. So you charge what you’re worth AND not having to sweet talk them.
What about other kinds of coaches though? The same applies, you just have to find a way to show your clients the cost of their inaction.
If you’re a life coach, inaction (to your potential client) might mean years of feeling unhappy. Imagine what it might be worth to your client to lift that depressing burden forever?
If you are struggling with pricing and refusing to charge what you’re worth, just change your perspective! Instead of telling them what you will do for them, focus on what they will achieve when working with you. By doing this, you can quickly paint the picture of, by not working with you, how much this will cost them! Once they see the difference, pricing becomes nearly irrelevant.