Pricing. The topic that makes otherwise confident business owners break out in a cold sweat.
“What if it’s too high and nobody buys?”
“What if it’s too low and I can’t pay my bills?”
“What does everyone else charge?? I’ll just charge a little less than that.”
Sound familiar? I’ve heard (and said!) every one of these. And here’s what I’ve learned: most small business owners don’t charge too much. They charge too little.
The most common pricing mistakes
Let’s get the cringe-worthy stuff out of the way first. See if any of these ring a bell:
Pricing based on what you’d pay. You are not your customer. What feels expensive to you may feel like a bargain to someone who really needs what you offer.
Racing to the bottom. Being the cheapest is a tough place to compete. There’s always someone willing to go lower, and bargain hunters are rarely loyal.
Forgetting the hidden time. The emails, the prep, the revisions, the invoicing, the follow up. If you only charge for the “main” work, you’re working for free more often than you think.
Never raising your prices. Your costs go up. Your skills go up. Your prices should too!
Apologizing for your price. If you sound unsure, your customer will be too.
A simple way to set your price
You don’t need a complicated formula. Start by looking at three things:
1. Your floor: what you need
Add up your monthly business costs plus what you need to pay yourself. Divide by the number of clients, projects, or hours you can realistically handle in a month. (Be honest about admin time!) That’s your floor. Never go below it.
2. The market: what others charge
Look at what others in your space charge. Not so you can undercut them, but so you know the range your customers expect. Where you land in that range depends on your experience, your results, and your service.
3. The value: what it’s worth to them
This is the one most people skip. What is the result worth to your customer? If you help a client save ten hours a week or land a big contract, your price should reflect that, not just the time it took you.
Your price lives somewhere between your floor and the value you create. In my experience, most owners are sitting way too close to the floor.
Package it, don’t just price it
One of the easiest ways to raise your prices (and make buying easier!) is to stop selling hours and start selling packages. A clear package with a name, a defined result, and a set price is easier to understand, easier to say yes to, and harder to compare to the cheapest option out there.
Bonus: packages also make it easier to get clients, because people know exactly what they’re getting.
Say it like you mean it
Once you’ve set your price, own it. State it clearly. Don’t apologize, don’t over-explain, and don’t offer a discount before anyone has even asked for one. Then stop talking and let them respond.
It feels uncomfortable the first few times. It gets easier, I promise.
Not sure what to charge?
Pricing is one of the most common things clients bring to coaching, and one of the fastest wins. Together we look at your costs, your market, and the value you create, then build packages and prices you can say out loud with confidence. Want to tackle it in one focused sitting? A Power Session is perfect for this.
WRITTEN BY
Beth Power, business coach at Dream. Launch. Soar.
I help small business owners sort out marketing, operations and strategy, one hour a week.
Want help putting this into practice?
Weekly one-on-one coaching gives you a sounding board, a clear plan and someone in your corner. The first call is free.
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