Are you pricing your service-based business products based on your skills or your confidence level?
I am here to share with you why charging based on your confidence level is not the smartest move you can make in your business. Let’s take a look at the coaching industry. Whether you are a life coach, business coach, marketing coach, or health coach you want to take a good look at your coaching skills when you are pricing your services. I have worked with coaches from all areas and the same thing comes up every time I ask how much you are pricing your services. Lowballing your services because you don’t feel like you have the skills to charge more. I have discovered that it really has nothing to do with skill but so much more to do with your confidence. And you want to charge based on your skill level, not your confidence level!
What skills do you have? Do you have and hire education classes that can be applied to what you are doing as a coach? Have you taken classes, webinars, or workshops that have increased your skill level? What about job experience, parenting experience, relationship experience, marketing experience, health journey’s that you have discovered more information from? All of these areas increase your skill level.
I remember when I was a seminar facilitator with a personal development company and my mentor asked me to explain what I do to get the people back in the room when they have left because of overwhelming, fear, or frustration. Many of those people intended to leave the five-day seminar for good the first day. I was the person who would go after them and eventually I was able to bring them all back to the workshop. I even went to the airport to bring one of them back. When my mentor asked this question I was like “what do you mean”? He said I want you to teach the other facilitators how you get them back into the room so we don’t have to offer refunds.
I was a little surprised in the moment when he asked that because I had never gone after the people who bolted out of the room with the intention to bring them back so the company didn’t lose money!
I share with my team that it was “not my intention to bring people back”. They all looked stunned. I had brought every person back into the room. 100% success…. But I had a skill that I did not realize I had and the team wanted to know the steps to that skill. The truth was I didn’t realize I had the skill to do this. SO I thought for a moment and shared my steps and discovered the skill I was leaving off the table for my value. What to know what my skill was? It was simple when someone left the room my goal was to go make sure the person was okay! I wanted to make sure they were going to be alright because I knew they had just realized something about themselves that did not feel good and they were unsure what to do with that knowledge. They would always say something like “I’m not going back in the room” my response was always “Okay, that’s not why I am here”. Then I helped them process through that newfound information. Helped them figure out what they wanted to do next and let them know that if they completed the event they would discover more tools on how to work through that newfound information. Guess what? I have been doing that with clients for years and years, I just hadn’t seen it as a skill that others wanted.
So, what are the skills that you have that you haven’t realized could be seen as a value in your business?
People always say to me “that’s a good question” my response is “I am a professional question asker so they better be good”. I am known for asking questions and challenging who you ask questions. That too is a skill that I had no idea how valuable it was. When I was a child my mom used to always say “you are nosy” or “stop asking so many questions”. Now I tell her that I get paid for being nosy and asking questions. (Drop the mic) haha.
Seriously though, what are you doing that is seen as a value? Ask people and listen to what others say you are good at. Then incorporate that into your pricing and be more of a value to your clients.
What are you bringing to the marketplace that others need from you? Your education, experience, time, and creativity you bring to the table can get you a raise without having to do more than just deciding what the price of those skills is to others.
Are your prices the same now as they were when you started?
When did you start your business? If your pricing is the same you have an issue. Minimum goes up, economic pricing goes up, interest rates change and you are still the same…. That’s a hint by the way.
Pricing by the hour, the project, the package are just a few ways to price out your services. Look at how you are pricing now and determine if you need to do something different. If you feel you have priced your services because you were not confident enough to believe you are worth what other people in your industry are charging then you might ask how you are serving your clients with that kind of thinking. Don’t you want the best for them? Don’t you think they want the best for you too? Yes, people are cheap but I have been the single mom on welfare with no money and somehow I was able to find the right resources to get what I wanted and needed. And your clients are capable of finding the resources to work with you if your prices are a little higher.
Taking a little time out to look at what you are truly offering your clients and prospective customers can shift how you create profits for your business and get paid for your skills and not your confidence.