Are You Charging What You Are Worth?
I recently had a discussion with a client about their pricing structure we are building. In the conversation we spoke a lot about the different aspects of setting a price. As per common knowledge you look at many pieces such as market requirements, expenses, profit margin, etc. During the conversation, two aspects certainly stood out: Value and Competition. In fact we looped back about 3 or 4 times to talk about these two.
People by nature begin their pursuits with a high value thinking to themselves, “I am worth X amount and people will pay for it”. As time continues and the business is being setup, realizations of what they are worth and what the market is asking to pay are completely different. Ideas spring up that in all normality you would think should be for the better but in actuality are not.
The question to answer is:
“who am I asking to get feedback from?”
The client paid my firm to consult on their pricing and marketing model, to develop the business model and to implement a marketing campaign. In the process we had collected real market data creating a business model that would see the client’s business grow. Even though the hard factual data showed the pricing model was solid, during the process, our client had these negative thoughts of it being priced to high.
We pondered this phenomena over and over trying to figure out why this was occurring. Here we had a client paying us for solid real time advice, yet they were getting worried that it would not work.
After brainstorming for quite some time with the team, the question we kept bring up was “why did the client love the pricing but then changed their mind?”.
Was it fear? Was it too big of a change? Were they comparing themselves to others?
Why am I writing this post?
The reason I write this post today is because we asked the right questions to lead to the answers we were looking for. The client had spent quite some time talking with friends, family, and colleagues who discouraged the pricing structure. They were actively discrediting the ability for this person to sell at the pricing we had set.
The fact is that when you start a business you need to maintain your self-worth. Your image of who you are and what your value is must be maintained. The risk in starting your own business is high. With that comes high stress and with high stress come thoughts. They can be positive or negative.
Positive thoughts can make your experience of starting a business a beautiful one. One that brings you to the next level of who you were meant to be!
Thoughts can also be negative. These thoughts can cause high anxiety and a failure complex mentality. Draining your mental resources will only lead you to a level that will put you on the path to failure.
How do these thoughts come to be?
They come to be from conversations with people who are either negative or positive. People who are family members, friends, colleagues, and the people closest to you. People can drain you quite quickly with their negative thoughts. They can bring you to a level of self-worth that will make you feel like there is no possible way you can succeed.
Solution for this?
Establish rules with the people you talk to about your business. If you family has no knowledge of business, if your friends have no knowledge of business, if the people you associate with have no knowledge of business, do not talk to them about business. They will tell you their opinion that is based on what they see and not what is. They have no real research to back their claims. Only the bubble they live in.
Focus solely to talk with people that are in business. People who see your thoughts, your values, and self-worth. These people will help guide you in the right direction, a support that is much needed during the start of a business.