What keeps a lot of entrepreneurs and service providers from charging what they’re really worth?
They don’t price their products and services correctly …
… they think “I am not a sales person.”
Now, combine that with a healthy dose of “It’s rude to discuss money,” and you can see why it’s easier to just keep your rates low.
Even when you’re struggling to run a profitable business.
Many people don’t charge enough and it’s destroying their business.
Let me tell you a personal story.
I’m a Debt Expert.
No! Don’t run away just yet!
Usually people hear what I do, and think “bailiff” or “debt collector”
… and instead of seeing me, Ron, a legal strategist with a passion for profit
… they visualise something scary and mean.
In reality, I’m a nice person (honestly). I can help business owners and entrepreneurs get back the money they’re owed.
Money they worked hard for and deserve.
Maybe it’s time for you to reframe how you sell your services in order to maximise your profits.
… Not only will you see things in a clearer light, but ‘selling’ suddenly won’t feel so … dirty.
Let’s start with how ‘traditional’ pricing discussions take place.
When talking to a potential client you explain …
- What you can offer them
- How your product or service works
- What he or she can expect from you (E.g. how many calls/emails, phases of work, length of contract), etc.
… then you say, “My rate is £XXX.”
Your client either says “yes”, “no” or the kiss of death … “maybe”.
What you should do instead?
Turn it around.
Rather than focus on what he or she will get from you …
… instead take a look at what she will achieve when she buys your service.
For a business coach, this is easy.
How much more profit will your client make when she hires you?
If your coaching fee is £1,000 per month, but you can show her how to increase her sales by £3,000 per month, then your price is inconsequential.
She’ll earn it back three times over, not only while you’re actively coaching her, but for the rest of her business life.
Who wouldn’t pull their credit card out and pay a deposit right there and then?
What you’re doing here is not talking about the cost of your coaching, but rather the cost of not hiring you.
… Because if she doesn’t work with you, she’s losing £3,000 per month.
- That’s £36,000 by the end of the year.
- Over £100k in three years.
- Ten years? She’s lost a million quid, just by not hiring you.
What about other kinds of entrepreneurs?
The same applies for everyone.
You just have to discover the best way to show your clients the cost of their inaction.
If you’re a life coach, inaction for your potential client might mean years of feeling unhappy and unfulfilled.
Imagine what it’s worth to your client to lift that depressing burden forever?
The same goes for health and wellness entrepreneurs and products.
… Can you add 10 years to the life of an unhealthy, overweight man?
- That’s 10 more years to spend with their children
- Their grandchildren
- More energy to give to their partner
What about ‘dating’ entrepreneurs?
Did you see that episode of Frasier where he pays a dating coach 10k to find him a date?
Yes, a well respected psychiatrist, radio host and minor celebrity pays for a dating coach.
… Because he doesn’t want to be alone.
For someone who’s been unlucky in love, the promise of a man or woman who will love and cherish them is so valuable that any price is worth paying.
When they understand what your product will do for them they will buy.
You just have to help the prospect visualise what they’re buying.
… and, in the end, it’s always the intangibles that they purchase.
Ask them this
What will life/business/love look like without your services / products?
What can it look like with your services / products?
Once your prospect can see the difference, pricing becomes irrelevant.
… And, in turn, you’ll stop undervaluing what you do, and your business can become a whole lot more profitable.
So, what can I do for you?
It’s simple, I help business owners and smart entrepreneurs maximise the profitability of their business.
I help set up systems to protect business owners, making it easy for them to do business safely.
I help make your cashflow worries something of the past so you can move forward with your business.
Contact me if you’d like to sort out the cashflow issues in your business once and for all:
Tel: 0208 088 4565
Request a call
Or, if your Cashflow is as perfect as it can be, why not share this information with someone else so their business can become more profitable.