It’s Sales Wednesday! On today’s segment of Make Money Your Honey Live, we’re covering one of the biggest issues I see business owners struggle with all the time – particularly coaches. That is, how to set prices!
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The Problem:
Most of you struggle financially because you’re undercharging. You don’t know how to set prices.
There, I said it.
My team has been letting me know that some of you are charging as little as $5 for offerings that cost thousands. Others are busting their brains trying pay bills with $49 services when their skillset commands top dollar.
I consistently have to push clients to get them more comfortable with asking for more money. One of my recent Persuade to Profit clients started earning 2.5X more money for the same offering once we got her pricing squared away.
Why do coaches and consultants do this to themselves?
There are lots of reasons why people fall into the trap of undercharing. Here are a few:
- Economic contractions like we’re experiencing now. Basically, you assume everyone is broke and there’s no money (not true at all) so you accept crumbs and whatever you can get.
- You think it’s easier to sell low ticket offers (it’s actually not).
- You’re not confident in your skills (we cover this in Persuade to Profit)
- You don’t see yourself and your services as worthy of making money
So what happens when you don’t know how to set prices properly?
Pricing is the one thing that could shift your business practically overnight. It can fix profit leaks, it can pay off debts and it can attract a whole new kind of client. Here’s what happens when we don’t have the correct pricing.
- You’re broke.
- Cash flow sucks.
- You attract people who are price shoppers and trying to nickel and dime you.
- You attract people who are a pain in your ass.
- You have to do so much extra work for small amounts of money.
Basically, if you accept crumbs you’re going to get crumbs.
Here’s the truth about how to set prices…
It’s easier to sell something that costs $2000 than it is to sell something that costs $20. I break down exactly why in the video above. A lot of you are out here making your lives way more difficult than they need to be simply because your prices are off.
“But wait, I could never charge high ticket prices!”
Yes you can. You want to know how I know that? You’re already selling something that is inherently expensive. Your brain, energy and time are the most expensive things you have. Do yourself a favor and stop prostituting your talents.
Additionally, if you’re undercutting your pricing you are being cheap with yourself. If you are cheap with yourself you attract cheap people into your business.
“But, Amanda. I’ve never spent that kind of money.”
Lies! In fact you’ve probably spent MORE money for less value. You’ve paid for a house, your rent, a car and that iPhone in your pocket. You get yourself into debt over Christmas presents. So don’t tell me you’ve never spent that kind of money because you certainly have.
“But, Amanda. People aren’t paying that kind of money right now.”
They absolutely are. I was on a call with a mentor last week where someone announced they closed a $600k sale. I closed a five-figure client last week and I’m currently working on crafting a six-figure offering.
The right people will pay so long as what you offer demonstrates the value they are looking for. If you’re not sure how to figure out who the right people are then I invite you to a call my myself or a member of my team. Click the banner below to schedule your complimentary call!