Micro-entrepreneurs: Master Your Pricing

Starting a business is no small task. ​As an entrepreneur you​ have to ​create and deliver great products / services. ​You’re also CEO, CFO, Head of Marketing & Sales, etc… ​You may not need to be an expert in all areas but you do have to ge the job done. Pricing is one of those areas where micro-entrepreneurs often struggle.

  • To help their customers – they have some skill, idea or product that they believe can make a difference in peoples lives. 
  • To earn some money – to support themselves and/or a family, to supplement other family income or even for a rainy day fund.

​In order to ”earn some money”, aside from having a good product, you have to

  • Know your (the product’s) value from the perspective of the customer,
  • Assign a monetary value that is aligned with your financial goals and your customer’s willingness to pay.
  • Communicate confidently around the value you deliver and your worth.

Sounds easy, right? There are three things entrepreneurs can do to master pricing.

Understand Pricing and How It Affects Your Business 

Price is the monetary value you place on a good or service.  Pricing is how you set, communicate and manage prices for your business.  ​Three key skills will support you in pricing​: math, human psychology and communication. Pricing isn’t just numbers and that’s great news for those who don’t love math.

Pricing affects your business in two ways: the profitabilityand (for service-based ​businesses) how much you have to work.  Of the four levers that affect a business’ profit, price has the biggest impact. ​ Price reduces profit as swiftly as it increases it, ​therefore you need to proactively manage ​pricing.

In service-based businesses price affects how much you have to work.  If you sell a service for $100, then you need one customer to earn $100. However if one time you offer a discount and sell it for $80, then to earn $100 you’ll need at least one more customer.  ​You work twice as hard to earn that $100 (not just the service, but also the administrative work).  Often times, people who discount indiscriminately or under price are caught off guard. They can’t understand how they work so much and earn so little.

Explore How Your Relationship to Money Affects Your Pricing

Each individual ​possesses a unique relationship with money​. It’s based on years of observations and experiences from personal (like our families, friends, teachers, etc.) and external (such as our community and the media) sources.  Our relationship with money impacts ​how we see and do pricing in our small business

For example I’m a planner.  I like to know what’s there, what’s coming in and where it’s headed.  On one hand that’s a positive thing for an entrepreneur, business planning is helpful. However it can lead to over planning which can slow me down or lead to indecisiveness.  The important thing is to understand your relationship with money. Know how it affects and defines your decision-making. ​

​Know and Stand Up for Your Worth

If ​you’re unclear what value you deliver, then how do you expect your customers to know?  ​Reality check…nobody ​sits out there waiting for what we have to deliver. ​You have to show them the value, ​believe in your worth and communicate ​it clearly​Setting boundaries and standing up for yourself, helps your customers ​understand your value.

For some it’s an easier thing to do than for others.  For many of us knowing and believing in our worth is influenced by our upbringing, social and cultural beliefs as well as those pesky little limiting beliefs we ​have.  ​Understanding ​ what’s influencing ​how you see your worth, ​can help you move beyond the things that ​hold you back.

In conclusion, entrepreneurs don’t always feel comfortable with pricing at the start. ​ However by understanding a few key elements you can begin mastering the art of pricing for your small business.

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Join me. Let's talk Pricing!

The 3rd Wednesday of the month we look at topics like…

JAN Where should I start with my pricing?
FEB Why profit isn't the bad word you think it is.
MAR Aligning your pricing strategy with biz goals
APR Should I offer tiers/packages for different segments?
MAY Why do I struggle to tell people what I charge?
JUN 3 simple actions when pricing objections arise

Add the dates to your calendar. using the link in the Zoom, email confirmation. Join one, a few or all. Events are usually 3rd Wednesday of the month at 16.00 Central European Time.

By registering to this event you will be added to my email list and receive updates about these events. As well as other great pricing content and resources. You can unsubscribe at any time.

Is it Time to Raise Prices?
And How to Do So Effectively.

Live Web Class

Raising prices isn’t as risky as you think it is.

Far too many businesses know they need to raise  prices but are afraid to do so. So they wait. And wait. And wait. Until it’s so painful they have no choice. That’s when raising prices gets riskier.

You need to know what to do and how. Find out more in this LIVE web class where we’ll look at:

  • Why people wait
  • Myths of raising prices
  • How to know when to do it
  • Tactics and strategies to do it effectively
Join me Oct 24th 17:00 CET /  11:00am EST.

Ever wondered...

Which customers .

If so this guide is precisely what you need.

The customers you choose to focus on, set the tone for your business. How you work, what you offer, how you offer it, what you charge and more.

This simple guide will help you think through which customer segments could be the most suitable for your business.

Ever wondered...

Should I Put My .

If so this guide is precisely what you need.

This is a strategic pricing decision. That’s great news. It means that by answering a few simple questions you can get to the answer.

12 questions with explanations and a simple checklist plus little critical thinking will help you decide the best course of action.