Importance of Pricing
As a micro business to understand the importance of pricing, you have to understand the value that you bring to your customers about the services/products that you are selling. In other words, figure out who your target audience is? How can you overcome the struggles and challenges that come along with setting a pricing strategy for your business?
This interview brings up the latest subject discussions when it comes to importance of pricing. Most importantly we draw some conclusions in how to set your prices, further more, acknowledge the value of your service or product that you are bringing towards your customers and what is the best way to increase the profitability of your business. Full transcript at the bottom of the page.
A Mother; Wife; Creative; Empath; Marketing mentor; Soul-centered entrepreneur; Chronic giver; Introvert; Podcast host; Victim of Chronic Idea Disorder™; Domestic abuse survivor. She empowers entrepreneurs to achieve and appreciate personal and professional success — without burnout.
Transition from Employee to The Pricing Lady
Firstly we start talking about where I come from? What did I study? How did I start my career? What was like to be a pricing specialist? How, where and why did I decided to become The Pricing Lady and build my own business related to all aspects of pricing?
Biggest Struggle in Price Setting
Large businesses hire many people to do specific tasks…like bookkeeping, sales and pricing. Small business owners do most on their own at the beginning and with time as the business grows they may hire people. Generally, you’re the one who has to set the prices. You’ve probably never been trained or taught how to do it, much less do it well.
Therefore, one of the first big challenges that you have to overcome is how to set prices. More importantly for many of you feeling confident in the prices you set, in having pricing discussions and in making pricing decisions is new and challenging.
Secondly you may struggle there may be core beliefs or things hindering you in the area of money, success and worthiness that get in the way. Even if you have the pricing know-how and skills you may struggle due to things at a subconscious level.
Branding and Pricing
We also discuss about how brand is related to the image and the value that you, as a small business, deliver to your customers. Do you understand the connection between brand and the importance of pricing? Is your brand supporting and/or supported by your pricing? Good questions to think about.
To better understand the importance of pricing when it comes to Pricing Strategy we talk about the 2 types of Businesses: the price takers and the price makers. What is the difference between the 2 of them and why is it important? Which is the target audience for each of this type? As you know all roads in pricing point to your customer. This is where prices starts, by understanding who you’re targeting.
The Human Behind the Business
So one of Kim’s questions in the podcast interview was: What is your dream in your business?
We continue speaking about the 2 most important reasons why I started this business:
- financial freedom for all – I believe that everyone has a right to financial freedom (in what ever context they define that). Helping small businesses with pricing helps them to build profitable businesses that are there for the long term.
- changing the way I work – I want to have more flexibility to do volunteer work with children and women led businesses in developing countries. My own business can give me the flexibility to do more of that kind of work.
Learning vs Implementing
Knowing is the biggest advantage you can posses as a business owner. The best way to achieve that is through learning. In other words, to be in trends with the latest business related topics, technology involved or marketing strategies, you must always be in the know-how to succeed in your business.
However, never forget that to be successful in your entrepreneurship journey, you should have a goal to which the learnings should be applied. So learning with no scope is like sailing with no destination.
Money, Success and Worthiness
Mindset is very important for your business and they are in close relation to your price setting. The most 3 important ones are: Money, Success and Worthiness. So why are they so important to your growing business? How can they impact your pricing? What are the Core Beliefs getting in your way of your business?
In the last part of the interview we talk about my new projects in Sri Lanka, the Sales Funnel, “That’s too expensive” video series and checklist for micro businesses
So if you want to find out more about what pricing says about you, watch the Positive Productivity Podcast Show, episode 600 and read the transcript to be amazed of the new things you’ll find about your pricing.
“The brand is part of the image, it’s part of the perception around the value that’s delivered.” – Janene Liston
“It’s not about where you live, it’s about the value that you provide, and what people are willing to pay for it.” – Kim Sutton
”It’s a big struggle that people have with price setting. They’re trying to sell everything to anyone.” – Janene Liston
“But if we’re going to spend money on things, we should be implementing.” – Kim Sutton.
“Pay attention to what your prices are actually communicating towards people.” – Janene Liston