Should You Raise Your Prices?
So, let’s say you’ve set some business goals (one of which includes paying for a larger storefront, or giving your employee(s) a raise, or just making more money this year so you can live comfortably). Now what? How do you get there? Should you raise your prices?
First off, I generally don’t tell my clients exactly how to price. What I do offer is guidance around that topic. Some of it is straight out of business school, and some is a little more personal. Because, let’s face it, money is both straightforward (numbers are numbers) and personal (what we get paid affects our livelihood and choices), so I don’t like to pretend it’s just a numbers game - it’s not.
Here’s a brief overview of what I recommend when pricing:
Do a Gut Check. We tend to know more than we think we do. While we’re doing a million other tasks, our brains are logging things away for future use. With women especially, awareness of our surroundings is one of our superpowers. You probably already have an idea of what you want to charge. Write it down and see how it feels.
Do Your Research. What are your competitors charging? How about folks you aspire to be like? Locally? Online? Write it all down and put it in a spreadsheet. Then, decide where you fit on that spreadsheet. How does your product or service compare to your competitors? Is it on the premium end? Or do you live more on the bargain side of things? This is called competitive analysis. Are you Payless, Steve Madden, or Louboutin? Price yourself accordingly (and feel free to send me some samples in a 6.5.) 😃
Be Where You Are. It can be tempting to start a business and want to be rich immediately. While I’m all about smart, talented women and creative entrepreneurs getting rich and doing great things with their money - for most of us, that takes time. So, start where you are. If nobody knows you and your work yet, you might want to start off with lower pricing - people are more likely to take a chance on you. Then, if you do a bang-up job, word will spread like wildfire. Trust me. We humans love nothing more than a good deal – except talking about what a good deal we got.
Charge More. While it’s important to start where you are, don’t get stuck at the starting line. I CONSTANTLY see well-established, well-loved, incredibly talented women and artists that are afraid to raise their prices and ask for more - even though they’re more than worth it. If that sentence struck even the tiniest chord, that’s probably a sign it might be time raise your prices. If people are gushing about your work, you’re selling through certain products, if you’re consistently booked, or things just feel out of alignment - it’s time to take a look at what you’re charging.
Do Another Gut Check. Once you’ve done all your research and thought about where it makes sense to position yourself - it’s time for another gut check - one I like to call The Three Bears Method. If you think charging $2,000 for a service seems about right, ask yourself how it would feel to charge $1,750, $2,000, $2,250. You want to find the number you won’t feel resentful about accepting, and you won’t feel guilty for charging. How about $2,000, $2,250, $2,500? Keep going until you find the number that feels juuuuust right. If it pushes you just a wee bit out of your comfort zone, but still feels good, you’ve found the right number. Rinse and repeat for each service or product you offer.
If you’re still feeling unsure and/or stressed about pricing, that’s totally normal. A lot of emotion is wrapped up within questions of money (it should be - we’re talking about your livelihood). If you’re still overwhelmed, check out Jen Sincero’s book: You are a Badass at Making Money or shoot me an email. I’m here to walk you through this stuff.
Don’t forget - pricing in a way that feels authentic to you, asking for more, and securing your own stability and freedom are all part of saying Yes to You!