Creating a pricing strategy can feel a lot like buying a lottery ticket—you pay the price, but there’s no guarantee of a return.
Now, consider your pricing approach. Do your clients feel like they’re gambling on whether they’ll get value? If you’re not sure then you need to find out. And if they feel there’s risk there, they won’t be inclined to buy. Furthermore, if they do buy and the value isn’t there, they won’t stick around.
Your pricing strategy isn’t just about setting numbers; pricing, when done well, is a tool for building trust, fostering loyalty, and creating long-term client relationships. But how do you price in a way that not only reflects your value but also encourages clients to stay with you over time?
In this episode of Live with The Pricing Lady, you’ll explore how to craft a pricing strategy that strengthens relationships while keeping your business profitable. You’ll discover how to price with confidence, communicate your value effectively, and set expectations that lead to lasting partnerships.
I’ll share key insights on balancing profitability with customer satisfaction, avoiding common pricing mistakes, and adapting your strategy as your business grows. Whether you’re a service provider, consultant, or entrepreneur, this episode will give you the tools to develop a pricing approach that keeps clients coming back.
Tune in to learn how to price for both profit and partnership!
What to Listen out for:
- 00:43 Building a Pricing Strategy for Long-Term Client Relationships
- 03:06 Mindset Shifts for Effective Pricing
- 09:04 Key Elements of a Relationship-Based Pricing Strategy
- 18:01 Common Pricing Mistakes to Avoid
- 26:27 Conclusion and Next Steps
Favorite quotes from this episode
“Your pricing strategy should be clear, fair and build long-term loyalty.” Janene
“…..focus on reframing pricing as an invitation for clients to invest in their transformation.” Janene
“If you have repeat clients in your type of business, then you may be able to offer loyalty and retention discounts that make sense for you and for the client.” Janene
“Why is time-based pricing not ideal when you’re trying to build long-term client relationships? Well, it focuses both you and the client on time. And time is not the value that you’re bringing to the table, it’s your expertise. It’s your know-how, it’s your skill, it’s the way you work with your clients.” Janene
“ You want your pricing to be very simple, whether you present it verbally or on a website or in a formal written offer of some sort. You don’t have to communicate everything to everyone.” Janene
“ A lot of times people offer discounts, one because they feel a moment of weakness, they feel a lack of confidence and uncertain. Other times people will grant them because that’s what everybody else is doing and those are not good valid reasons to be granting discounts.” Janene
Episode Links
Join the next Lightning Lesson: How to Price with Confidence (even if you hate selling)
The Fair Price Formula: https://maven.com/the-pricing-lady/fairpriceformula
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Get started improving your business. Beyond this pricing podcast there’s more for you to explore. Sometimes it’s difficult to know where to begin. I suggest you Download the the self assessment Pricing Scorecard to get a view of what’s working and not in your business. Ever wondered, “What’s a fair price?”, check out my on-demand webinar “Getting to A Fair Price“. Two great places to get started with pricing in your business today.
Get in touch with Janene, your Business Strategist & Pricing Expert. If you’ve got a business question that needs answering, a pricing challenge you’re facing or you have suggestions for future topics or guests, let me know. Your questions and insights often become episodes. Share yours with me and let’s see where it goes. Contact Janene.
Transform your business and life. My mission is to help you build a more sustainably profitable business. One where you can confidently charge for the value you deliver. Curious about my coaching and consulting offers, check them out. Let’s see how we can work together. Book a complimentary Call today!
Welcome to the Episode
In this episode of “Live With The Pricing Lady,” I explore the importance of creating a pricing strategy that fosters long-term client relationships. For many service-based businesses, this should be more than just an aspiration; it should be the cornerstone of how you approach pricing. Join me, Janene, The Pricing Lady, as I delve into what it takes to create a pricing strategy that truly supports your business objectives and helps you maintain lasting connections with your clients.
Pricing as More Than Just Numbers
Many entrepreneurs overlook the fact that a robust pricing strategy is about much more than setting a profitable rate. It is an essential tool in achieving business goals, particularly when it comes to nurturing and maintaining client relationships. For service-based businesses especially, creating pricing strategies that are mindful of relationship-building can determine success or failure.
Pricing is not merely about numbers; it’s also about trust, sustainability, and building relationships. This is especially true for service-based businesses, but it can apply broadly across various industries. It’s important to step beyond the numeric aspect of pricing and consider how your pricing strategy influences trust and relationships with your clients.
Shifting Your Mindset Around Pricing
A key component of fostering long-term relationships through pricing is making a mindset shift. This involves tackling fears around pricing, like the fear of setting rates too high or questioning the value you deliver. Part of this shift comes from acquiring more knowledge about your clients and pricing strategies, which can alleviate common fears and result in better offers and pricing confidence.
It also involves looking at things differently. For example, valuing the time and expertise you bring to your clients is crucial. I focus on understanding and appreciating the experience, skills, and efficiency I offer my clients. If I don’t see the value in what I do, chances are, neither will my clients. Or Instead of viewing pricing as a cost to the client, reframe it as their investment in transformation or growth. On one level this shift is for you – it helps you think and do things differently when you see the price as an investment people are making. Secondly, it changes the conversation from being purely transactional to one of potential, improvement or even partnership, paving the way for stronger client relationships.
Creating a Pricing Strategy that Fosters Longer Term Relationships
One thing I discuss are the key elements of a relationship-based pricing strategy that can help you build strong, lasting client connections. First, we explore how transparency and trust are at the heart of creating fair pricing that not only attracts clients but keeps them coming back for more. Clear, open pricing helps establish a solid foundation of trust, which is crucial for long-term loyalty.
I talk about value-based pricing, focusing on how to price your services based on the transformation and impact you provide, rather than just the hours worked. Additionally, we’ll discuss the power of tiered and flexible offerings, allowing you to meet the diverse needs of your clients with different service levels. To further strengthen relationships explore the use of loyalty and retention strategies, like offering special pricing for repeat clients or creating referral incentives. Finally, we’ll look at how payment plans and accessibility can help make your services more approachable without undervaluing your expertise. This approach ensures you’re creating pricing that not only supports your business but also nurtures long-term client relationships.
Avoiding Common Pricing Mistakes
Later we take a look at common pricing mistakes that harm your client relationships. First we look at how underpricing can attract clients who don’t align with your ideal audience, often leading to undervaluing your services. We also highlight the dangers of overcomplicating your pricing structure, which can create confusion and erode trust. Another key mistake is failing to set clear boundaries around scope and expectations, which can lead to miscommunications and frustration. Lastly, we examine the pitfalls of relying too heavily on constant discounts instead of using strategic, value-based promotions to maintain the integrity of your pricing and brand.
In Conclusion
Building a sustainable pricing strategy that supports long-term client relationships requires a careful balance of mindset shifts, relationship-centric elements, and avoidance of common pitfalls. As I reflect on my current strategy, I consider whether these components are present and working effectively for me.
Want to know more about creating a pricing strategy that builds long term relationships? Listen to the full episode at www.thepricinglady.com/podcasts and explore more insights for your business.
Don’t miss out! The next cohort of my program, The Fair Price Formula, starts on March 21st. This program is designed to help you set prices with confidence and align them with your business goals. Learn more and secure your spot at www.thepricinglady.com/setmyprices.
