Here’s how to deal with the human side of pricing, per my Linked In Live conversation with Petia on 9.12.24.
Name what is holding you back – Identify EXACTLY what is causing you to under price yourself, even if it’s hard to admit! Ask yourself 3 or 4 times, “What is holding me back from changing my prices?”
Phone a friend – Tell a trusted advisor, coach, consultant, mentor, or fellow business owners in your mastermind that you want to increase pricing and you’d appreciate their honest feedback.
Share what you know about competitor’s pricing, what you factored into your pricing, why you think it’s the right time to change pricing, and communicate what you deliver for the price charged.
Then just listen and take notes. Answer any clarifying questions they have but don’t rebut!
Since this is your trusted circle, stay curious and open to what they have to say. They may give you suggestions on how to improve your packaging, presentation or the pricing itself.
Petia found support in a business consultant that inspired her to increase her prices, but then she had to do the uncomfortable but necessary thing and ask for the higher price in a sales call with a client.
Make the ask – Whether you’re speaking to a current or new client, communicate the problem/challenge they told you they’re facing, walk them through the risks of not addressing the problem, share your solution, specify why your solution is the right one, communicate your pricing, and then be silent!
Allow for any awkwardness in the silence. Feel your nervous system light up. Breathe. Stay silent. Even if you feel the need to defend the pricing, stay silent.
Focus on simply answering any follow up questions they have and reiterating all they’re getting for the price, whether it’s a product or service.
If they want to negotiate, pull back on the deliverables or offer a smaller product/service that takes less time to produce.
Now, for my readers who want to dive into the mathematical way to figure out your break-even price, read (Amazon) or listen (Audible) to Chapter 6 (Move From Your Core) of my book: Dancing with Numbers: Grow a Financially Healthy Business and Choreograph the Life You Want.
You can also book a financial strategy consultation to get a CFO’s thoughts on your pricing. Schedule a Financial Strategy Session
What’s better than that?
Talk soon,
-Tricia
Tricia Taitt is the CEO and Chief Financial Choreographer of FinCore. She holds an M.B.A from The Fuqua School of Business of Duke University, and a BS in Economics with a Finance concentration from The Wharton School at the University of Pennsylvania. For over 20 years, she’s been a finance professional. Half of the time was spent working on Wall Street while the other half was spent in the trenches side by side with small business owners. As a result of working with FinCore, clients have been able to take control of their numbers and feel more confident in their ability to make decisions, while increasing profits by 10% and building a cash stash to invest in growth. Follow Tricia on LinkedIn and Instagram.
If you’re ready to see what our team of CFOs can do for your small business, Schedule a Financial Strategy Session.