Charging what you’re worth is often an issue for entrepreneurs. Not wanting to charge too little, or too much, can lead to the inability to trust your pricing structure.
There are several factors to consider in pricing.
- Labor costs
- Hard costs including overhead
- Profit margin
Before you set your pricing, you must know who your market is. No matter how wonderful your product or service, if you’re offering it to the wrong market, you won’t be able to convince people of the value.
Price your services too high and you risk losing customers who don’t see the value of what you offer.
Ask too little and you risk having potential clients think you are cheap or inexperienced.
A common mistake of inexperienced entrepreneurs is way undercharging. They mistakenly think all decisions are based on cost rather than ROI.
There are plenty of people who will pay top dollar if they do get a great ROI.
A huge part of helping clients get a great ROI is a market match. Whomever you are targeting they have to find value in what you offer.
For example, you may have a great coaching program on how to expand your revenue stream, but if you are offering it to people who work at fast food restaurants who have no interest, or desire, in building a business, you could give the program away and they would not see value.
On the flip side, when you are dealing with high end clients who have more money than time, trying to sell low priced info products to them in order that they can learn how to do a “thing” you are missing the mark. They will pay to have the “thing” done.
You absolutely must know who you are marketing to.
You risk resenting your clients if you undercharge. You risk feeling like you are taking advantage of clients if you overcharge.
Not sure what to charge? Get the FREE report – Charging What You’re Worth http://www.powerupforprofits.com/worth