When you ask a small business owner what they do or why they love their work, the passion is so clear and easy to see. They can talk about their product or service and how long they’ve been in business or what inspired them to start. They get pretty comfortable speaking about their unique story and letting people know what new things they are working on and where they sell their product.
So, why is it that when it comes to the question “How much do you charge?” all that passion and knowledge tends to shy away?
The answer? Confidence.
Many business owners, particularly women, have a tough time finding the confidence to speak to their product or services when it comes to the money aspect. Let’s face it, money can be a little awkward to talk about.
So how do you get comfortable and get past the awkward to bring in the profit you deserve in your business?
Address the Fear
That well of anxiety in your stomach that sometimes creeps up on you when speaking about your pricing comes from a place of fear. Fear that people will judge us on what we charge for our work or that the price will give a reason for someone not to purchase from us. Here’s the thing: there will always be people who will think your prices are too high and there will always be people who think your prices are too low. Everyone will have an opinion! The good news is those people’s opinions don’t matter. Don’t let fear and scarcity drive your business. When you are trying to make those first dollars, or you need to make your business work, pricing can feel scary. Your selling efforts may come from needing more and trying to show the world you can do “this.” It’s not a good place to come from, and it will show.
Don’t Let Money and Emotions Intersect
Each of your transactions make for great happy dance enhancers, but they should not be validation for who you are and what you are doing. You’re so much more and so is your business!
Start looking at money more black and white. And get rid of the “Who do I think I am?” mentality so many women have when it comes to charging their worth! Don’t worry about what others will think about your pricing. All of the dollars and cents that you earn come from offering a value to your customer and clients.
When you have a strong pricing strategy, it’s easier to remove emotion from it. If you’re making things up as you go and lowering and hiking up every other sale, that’s part of the problem. How can you be confident speaking to your pricing if you aren’t confident about the price itself? Do your research and look at competitor pricing to get a feel for where you fall in the market. Remember that what works for them, may not work for you, but knowing where you stand is important. You may find you’re also insecure that the amount you charge doesn’t represent your work. Know what your bottom line profit needs to look like. Always take into account the cost of your raw materials and the time it takes you to produce what you sell along, with your fixed costs like rent, software charges, and anything that never changes. There is no magic formula for how to price your products and services, but knowing what money you need to take home versus what you need to charge will help you feel prepared.
Own Your Pricing Strategy
Remember that your pricing is not what is going to set you apart as a small business. You are! So, plan and prepare and feel confident in what you charge for your product or services, knowing you are the reason your customers will come back.