Owning your prices for your product or service is a common problem that a lot of new entrepreneurs have. They have a service to sell and have some expertise with it. They go to sell it and they realize that they don’t know how much to sell it for. Sometimes, they pick a price and then when they go to sell it, they feel super uncomfortable trying to sell it. They feel like they get a lot of objections. Some people say they can’t afford the service and then they get discouraged. They wonder are they not worth that much or what the issue is. I’m here to tell you that you are definitely worth it. But we want to go about it in the right way. I want to tell you how you can get through this so that you can present your prices and you can feel confident and happy with it.
Four Steps to Own Your Prices
I’m gonna share four steps so that you could feel confident every time you present your prices. Let us cut the frills and get into it.
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Step 1: Understand Industry Average Pricing
Understanding what the industry average for a type of product or service will give you a baseline of where to start. So, if you’re selling your pizza, you might want to look at other pizza slices and see how much they charge. If a pizza place normally charges $3 a slice, then you charge $9 a slice of pizza, it could become an issue. You can charge a little bit more than your competitors but you need to be aware of those numbers and averages. That way, you can feel confident in your price and you can correctly be able to explain to your customers why it’s worth that amount.
To get started doing this, first, we must make list of our competitors. Find anybody who you consider a direct competitor. Make a list maybe 10, 20, or 30 companies that you consider your competitors then look into their prices. If you’re in a service-based industry, it can be a little bit more difficult to actually get the pricing of your competition. I would definitely recommend checking out their websites to start. You could go in and you can look on their services page and see if they have anything listed.
A little pro tip here, you can check out the Facebook ad that they’re running. Go over to their Facebook page and then scroll down on their page. There’s a little box and it says page transparency and click on that. You’re gonna see something that says go see the ads that they’re running and you can go click in there. A lot of times, companies will have prices and like different things that are included in their service packages within the copy of your ads. Go take a look at that and start giving yourself some ideas of what all the other people within your industry are charging.
When I started out, I was doing social media services and I wanted to help small business owners with their social media. For me, it was very difficult because I found that there were so many prices everywhere. I had no idea where to start but now that I’ve been in the industry for a while, I know that generally my competitors and my industry charge a certain number depending on the scope of the services.
If people are running Facebook ads, they tend to charge between a thousand two to three thousand dollars in order to balance your Facebook. Because I know that, I can charge within that scope or I can charge below it or above it. I can feel confident knowing where I stand on that spectrum.
Step 2: Decide Exactly What You Are Selling and Lay It Out!
This is something that I actually cover in my membership, the Finally Visible Academy. Create your product or service in the sheet. If you want to succeed and you want to feel entirely comfortable with your pricing,
lay out every single aspect of it. If you have different packages or bundles, you’re gonna literally lay them all out on a sheet. You’re gonna say the name of it and you’re gonna say exactly what’s included in the scope of it including the exceptions that have to do with it. You’re going to include how much it costs you to do this and you’re gonna include the ultimate price of it for your customer.
Having it laid out like this not only will give you the confidence to be able to express it in the right way, but it’ll save you a ton of time and a ton of energy when you’re doing things like creating proposals or making services pages on your website. Make sure that you put a lot of time into it and really get it done because one of the worst things you can do is just tell people to give you a call or work out a custom package. People want a price baseline. They want to know what they can expect and that they want to know that you know what you’re doing by being able to press down on a certain way. Go ahead and get that done.
Step 3: Practice Your Pitch
Once you have a service or a product that you’re selling and you know exactly how much it’s gonna be, now you want to practice what that pitch is going to look like. Some people refer to this as like an elevator speech but I’m talking literally. If you had your perfect customer on the phone right now and they were saying that they were interested in what you had to offer, what would you say to them to close the deal?
A lot of people don’t put enough energy into this because once you have someone on that phone or you know they’re emailing you or they’re going back and forth, you don’t want to lose that especially if you’ve done the hard work. You’ve gotten them interested. You have to be able to close the deal. In order to make this pitch as perfect as possible, you’re gonna want to really think about what your customer needs, their challenges, their goals, what are they struggling with on a day to day basis that you can take off of their place or fix in their lives.
Highlight how much are you going to save them in time and money. Discuss how are you gonna make them feel better about themselves and how you are going to help them accomplish something. Start to think about all the actual benefits that come from what you’re offering and how you can incorporate that into your pitch. But make sure you don’t drag it on. You have to keep it short, sweet, and simple. If you drag it on and you start to lose their interest, that’s where it all kind of goes down.
Make sure you know you’re keeping it concise and you’re focusing on the really important parts of the pitch. Once you’ve clearly explained it, explain what it is and how it helps them, then proceed to step number four.
Step 4: Tell Your Price
This is your final step. Tell them the price and then shut up. Literally tell them the price and stop talking because this is where a lot of people lose it. They say okay it’s gonna be $1,000 a month. Then, they say but you know that comes with this and that and it’s totally worth it because of this and that. When you start talking in that way, you start justifying why it’s worth that price then your clients are going to feel like it’s not as impressive as they may have thought. You have to speak with clarity and confidence. You have to say this is my price and if they have a problem with it, then they won’t buy from you.
Nevertheless, most of the time, if you’ve gotten them to this point doing everything that you needed to do, and they are a good client for you and you speak with confidence, they’ll be interested. If we know as people investing in a product or service that this is going to truly help us accomplish our goals, then we’re willing to invest in what it is.
Make sure you do that. Say your price, shut up, be confident, and let them speak. Ask them questions for you. If they have questions, make sure to answer them clearly. Other than that, stand tall and don’t get scared of yourself or your pricing.
So that is how you go ahead and own your pricing. Get out there and make sure that you are confident in what you are doing because you are worth it. You have something brilliant to share with the world that can truly help them and you deserve to get paid to just like the rest of us. Don’t be afraid to share those prices with people. You know you are worth it.