Hey there, fellow entrepreneurs! Are you ready for some price setting tips?
Starting a business is like embarking on an epic voyage, full of excitement and endless possibilities. But when it comes to pricing your products or services, it can feel like sailing into uncharted territory. If you’re nodding along, feeling like you’re in the same boat, you’re not alone.
Chances are, you’re more familiar with the role of a consumer than a pricing guru. You’ve seen businesses use all sorts of strategies, but deciphering how they arrived at those price points or why they’ve used that strategy or if it’s even worked for them, that’s a whole different story.
You’ve likely already done your homework, having looked at costs and scoped out the competition. And while those things are important pieces of the determining what prices to offer, they in fact are not where you should begin.
About this Episode
In this episode, I’m sharing three simple price setting tips that’ll help you get started setting your prices in a better way. When you “flip the script” on how you go about setting prices you make it easier to feel confident about what you charge. And you put yourself in a better position to set prices that fit you and your clients. Whether you’re feeling lost, overwhelmed or just curious these insights will be your guiding light.
Listen in as I break down three simple tips that help you build the right prices from your customers and your business needs, rather than what everyone else is doing. Trust me, pricing doesn’t have to give you a headache. You should feel jolt of expansive excitement about how pricing helps you reach your business goals.
Let’s tackle it together and pave the way for prices that not only work for your business but also leave you feeling confident and empowered. Ready to get started? Let’s do this!
Episode Links
The next Pop-Up Pricing Masterclass is on March 5th and we’ll be focusing on Understanding Profit. https://thepricinglady.thrivecart.com/profit-mc/
The Customer Compass (previously the Customer Value Challenge): https://thepricinglady.com/thecustomercompass
What to Listen out for
- 0:00 Intro
- 01:14 The Importance of Starting Point in Pricing
- 02:38 The Role of Customer in Pricing
- 05:00 Aligning Business Goals with Pricing
- 06:47 The Impact of Mindset on Pricing
- 08:16 Revisiting the Three Key Factors in Pricing
- 11:04 Practical Tips for Clear Mindset in Pricing
- 12:00 Upcoming Masterclass and Courses
- 13:36 Final Thoughts
Favorite quotes from this episode
“When it comes to setting your prices, if you try to set prices based on targeting everyone, then you position yourself as a generalist. In the marketplace, generalists will command less than average prices.” Janene
“If your goal is to have the most market share, you’ll do something different with your pricing strategy then if your goal is to earn a little more profit than breakeven – just want to earn enough. Those goals are at odds but your strategies to reach the goals might be different.” Janene
“What you’re trying to achieve (i.e. business goals) can be enabled by what you do with your pricing. But only if you pay attention to that at the time you’re setting those prices.” Janene
“You have more influence over your prices than anybody else.” Janene
“If you start with a customer and your business objectives first, and then use those other things as a check, you actually get to better prices for your business, you end up usually being much better positioned in the marketplace.” Janene
“…sitting down to do pricing with a mind that is free from negative thinking, help keep you from getting stuck.” Janene
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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. Also if you’ve ever wondered “What’s a fair price?” then 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!
Episode Overview
Below is a short overview of this episode that includes 3 price setting tips for beginners. Let me preface this by saying that research shows customer-oriented businesses outperform their counterparts on many levels including profitability and customer satisfaction. And while you can’t only consider the customer’s willingness to pay when setting prices (it may not be profitable or competitive) by starting there you put yourself in a better position to get at a truly fair price – ie. a price that represents the value delivered, that enough people are willing to pay for and that brings a reasonable profit.
3 price setting tips to boost your business
Many people feel overwhelmed when they sit down to set their prices. They often have a lot of information but struggle with how to use it effectively. The key is to start in the right place – with the customer. Not only will it set you up for more success (as stated in the last paragraph) but it forces you to know them better. And it helps you focus on value which is one of the main things young businesses overlook. Understanding your target audience is crucial to all aspects of your business especially pricing. Whether you’re targeting price-sensitive customers or those with disposable income, it help you understand where in the price range your offer should be.
Consider your business goals
Every business has different objectives, and these objectives should influence your pricing decisions. If you’re running a side business for fun, your pricing goals will differ from someone who relies on their business for income. It’s important not to compare yourself to others whose pricing strategies may not align with your business goals. This also includes your businesses values – your pricing should reflect them as well. By aligning your prices with your objectives, your ensure your pricing supports you in achieving the goals (rather than working against you) and you bring more authenticity to what clients perceive. This price setting tip also helps you cultivate a more profit oriented mindset.
The power of mindset
Your mindset plays a significant role in pricing. Negative thoughts and self-doubt can hinder your ability to set the right prices for your business. It’s essential to question and address these thoughts to avoid their influence on your pricing decisions. Believe in your value and capabilities, and let go of any limiting beliefs that may be holding you back.
Conclusion
Setting prices can be a complex task, but with the right approach, it becomes much more manageable. By starting with the customer, considering your business goals, and maintaining a positive mindset, you’ll be on the path to pricing success. Remember, it’s not just about the numbers; it’s about understanding your target audience and aligning your prices with your business objectives. So go forth with confidence and enjoy the journey of pricing your products or services.
Don’t forget to check out the upcoming Masterclass series and The Customer Compass course by The Pricing Lady. These resources will provide you with additional tools and insights to help you navigate the world of pricing with expertise.
We hope this episode has provided you with valuable insights into price setting tips for beginners. If you have any questions or would like to share your experiences, feel free to send me a message. Happy pricing!
Disclaimer: The content of this blog post is derived from on of monthly Price Point events Janene Liston held. The above overview aims to summarize the discussion and provide key insights for businesses; however, it does not cover the entire conversation. Listen to the full episode and/or contact Janene for more information.
