Find the Right Price Point
You are in business for yourself for two simple reasons 1) You totally love what you do and 2) You have a desire to monetize from your skill or product. A commonality I've noticed among several new business owners is being afraid to charge an adequate price point for their product or service providers who create unknowing limitations to their service fees.
In my experience, I've found creating lower service fees will have a negative impact on many aspects of your business. For starters, your integrity and creditability becomes doubtful. Clients want to get the biggest bang for their buck but they also want to be ensured their money is being well spent! When you set your fees to low, the first question that runs through people's mind is VALUE. How much and what kind of value will I receive for this amount? This is known as perceived value. If clients are not heavily invested there is a strong possibility they will not pay attention to the process. Think about free webinars you've attended and the facilitator just wasn't all they were cracked up to be; you would become disengaged, doing other things like checking your email or surfing the web while the presenter was going through PowerPoint slides! Furthermore, you were reluctant to buy whatever it was they were seller at the end of the call due to the lack of value they presented [or as you perceived it to be presented]. When you set appropriate fees for your clients you become that much more excited to showcase your skill sets.
Now maybe you are saying “I will start off setting my fees low because I'm new“ or maybe you've had this thought, “I want to beat out my competition with lower fees“. If this is a thought you've had or even consider having erased it, delete it, completely blank it from your mind! “What's wrong with that“, you ask?…. This is what happens when you think in this restricted manner; you now have to secure double the amount of clients per month to make ends meet causing you to overexert yourself. You will start to look at your business as a chore rather than a passionate-filled, money making hobby!
One of the benefits of becoming a business owner is taken back ownership of our lives and having the freedom to be as flexible as we would like in our business. If you walk into your business in the delimiting mindset of setting lower fees as a way to “get your feet wet”, you and your business will drown!
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Erica aka The “Break-Through” Coach helps inspiring entrepreneurs break-free from their cubicle jail cell! She is a wife, mother of four and a saavy business owner who passed up the paycheck to pursue her passion! This post is reprint from her personal blog.