Tackling your pricing gremlins

Pricing is one of those topics of conversation that can get heated very quickly. For many small businesses, in particular, it’s the type of conversation that will bring up those pricing gremlins you have around pricing your products or services.

But it’s those pricing gremlins that can hold you back if you don’t get them sorted. 

So, let’s take a look at the typical pricing gremlins that could be affecting your business growth.

Pricing gremlin #1: Copycat pricing

It’s great to research what other, similar businesses are charging, but use them as a guide, not a rule. Other people’s pricing doesn’t factor in the results you can get for your clients, your abilities and expertise. 

And it certainly doesn’t factor in your costings and time, so you need another strategy.

Instead, before you price anything, know what your minimum costs are. [Don’t worry if this sounds overwhelming - I have a pricing calculator that can help you work it out!]

Pricing gremlin #2: Not being upfront about pricing

You need to be upfront about your prices on your website. It helps to avoid time wasters and saves embarrassment on both sides of the conversation. When you don’t advertise any pricing on your website, it can deter potential clients from even reaching out. 

One of the reasons why businesses don’t advertise their pricing is they’re not sure how to price! This is why it’s so important to know your minimum costs. You can then set a standard price for typical work - with an add-on price for extras. 

But if you want a much clearer and simpler pricing strategy, opt for packages. You can then have one set price that isn’t dependent on how many hours you work. Just remember to make it clear what is and isn’t included in the package price.

Pricing gremlin #3: Discounting too readily

As pricing gremlins go, number 3 is the most obvious sign of fear and panic around your pricing. It often shows up when you feel so uncomfortable talking about your pricing, that you end up panicking and discounting your prices, to feel better. 

You don’t know what to do, as you worry that you haven’t got the right pricing in place. You may even find yourself throwing in lots of extras, to justify the price a little more!

The key here is to have something else to offer. That could be a lighter or lower option or payment plans for the higher-ticket services. And this is another opportunity to implement packages, so there’s no misunderstanding over what they’re paying for.

Know your pricing personality

Pricing personalities help you to clarify and foresee your weak spots around pricing. You can see where you are with your pricing, how you feel about it, and what typically trips you up.

And you can usually see what pricing gremlins are going to crop up.

The four personalities are:

• Overpricing Orla -  Charges high and is the most expensive in a niche, so will need to discount to get clients.
• Underpricing Una - Isn’t charging enough, as tends to price according to others or has no clear pricing in place. This leads to pricing on the spur of the moment and random discounts and extras being given.
• Discounting Donna - Never sells at full price and ends up discounting a lot. She tends to avoid advertising prices, so as not to scare potential clients away.
• Generous Gina - Gives it all away as she hates charging. Often, she’ll discount and hide prices, as she feels uncomfortable bringing money into the equation.

Knowing your pricing personality enables you to tackle your pricing gremlins too. You can then become comfortable and confident with your pricing, and stop having them hold you back from growing your business.

If you want to work out your minimum costs so you can start pricing more effectively, head over and use my pricing calculator.