Starting and running a business is one of the best decisions I ever made. I love waking up every day knowing that what I do is going to help someone else and improve their life. But I’m not the only one. Business ownership is booming.
Forbes reports, “As of March 2011, there are an average of 320 new businesses launched every month, for every 100,000 U.S. adults. That equates to 543,000 new U.S. companies every month.” Among these people, and aspiring entrepreneurs alike, are many lingering questions regarding how they should start. One of the biggest questions is in regards to pricing products and services, “How much should I charge?”
Many new business owners are fumbling over the price they should charge customers for a product or service they deliver. So, I developed three overarching principles that I use to guide my price points. I also use this same system to help my clients get over their initial pricing hurdle and swallow the lump in their throat about the value they should place on products and services.
Know Your Worth
Knowing your worth is the main factor and first qualitative step to developing the price point for your offering. You started a business because you wanted to earn a living from what you love to do. You are in business to make money and you don’t want to come to a point where you own a job.
The price you charge is not enough to cover expenses and seems to outweigh the benefit of being in business in the first place. Know, and operate, without a doubt that you are a leader in your industry. Let your price be a reflection of the tremendous value you create.
Deliver The Best Service
If you are passionate about what you are offering then delivering the best customer service should not be a second thought. When determining price, keep in mind the amount of time that you will be spending (i.e. labor hours). Your time is valuable.
At the end of a day’s work, when you know you have done your best, you want to be able to smile at the work you created and say “That was worth it.” By the same token you want your customer to say “Wow ! That was worth more.”
Have A Million Dollar Mindset
Be the small business that truly loves its customers, serves customers well and careS about the service delivered. Once you treat every customer like they are the only customer you have, they will be eager and willing to write you a check that matches the level of value you create. Deliver special service to your ideal customer.
Don’t waste time arguing or justifying your price with a customer who thinks your price is too high. Avoid those customers like the plague and market to prospects that understand and can benefit from the value you create.
Don’t sell yourself short in business. Love what you do, be a craftsman of your trade.
This article has been edited and condensed.
Kemisha Robinson is the founder of The Business Craftswomen, an Atlanta based business guide that helps aspiring and current small business owners create the perfect manual to inspire, motivate and guide them into creating the profits they truly seek in business. Connect with @kemi810 on Twitter.
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