How To Stop Underpricing
Pricing Tips for Solopreneurs
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You’d laugh if I told you the original prices for my services.
Like for real, I was out in these streets selling custom marketing plans- a highly researched, individually tailored-to-your-brand service that takes me 22+ hours to craft and hone even with my decade or so of expertise- all for like $375 when I first started out.
I would literally have panic attacks or cry when coach after coach would tell me to “add a zero” or quadruple my prices after I had just done a ton of emotional work to raise my prices a tiny bit.
Start Using an Internal Measuring Stick
Sadly, my experience is not unique.
For so many wildly talented humans venturing into business for themselves after a lifetime of corporate systems devaluing their work- pricing is a whole can of worms. Particularly for folks who have been told by society- in the form of stark gender and racial pay gaps - that their work is literally worth less than the work of others.
So, first and foremost. If pricing feels emotional and scary for you, please be kind to yourself. And be patient with yourself. You’re coming face-to-face with the extent of the exploitation you were forced to adapt to, and now having to painstakingly deprogram that conditioning that runs scar-tissue deep. You’re healing through the revolution of your business and bravely choosing a new adaptation.
It takes time. Your nervous system will need lots of soothing as you edge out into unfamiliar new territory.
So, let’s talk some unconventional pricing tips- where we don’t turn to external market validation, or look at what your peers are charging, or even take what your coach says you should charge at face value.
Because, “the value of work” is always, and has always been subjective. And you are your own most important subject.
And the good news is that your own energy is an excellent barometer for when you’ve set your prices correctly for this moment in time. (Remember: you can always change your prices.)
Here are two simple questions to ask yourself to allow your energy to let you know whether or not you need to raise your prices.
#1: If you sell it today, how do you feel about the prospect of delivering on your offer?
You’ve priced appropriately if the answer to this question is something along the lines of: “Yassssss! Amazing! I can’t wait to get started!”
If you make the sale and you feel depleted, drained, and exhausted at the thought of fulfilling it… your price is too low.
I like to think of pricing as an energetic exchange. The investment needs to be enough for you to deliver exuberantly on the offer.
#2: How many would you have to sell in a month? In a year?
Alright, now we’ve gotta do some math.
We need to know roughly how much money you need to make in a month- not just to pay all your bills, but also to have the kind of fun you want to have, set aside the savings and investments you need to feel safe and secure, and stash a bit away for your annual expenses. Don’t forget to factor in your business expenses and taxes too.
Got your number? OK. Round up generously. Give yourself some buffer. NOW, you’ve got your number.
So, how many offers would you need to sell a month to meet your number? (If you have multiple offers, figure out what percentage of your income you want to come from this particular offer.) Are you still psyched to deliver? Will you still be able to take sick days, and holidays, and vacations?
How’s your energy now, when you picture delivering on all of those offers? If you’re starting to feel depleted at the thought, your price is too low.
Is there a number that brings more spaciousness and ease?
How many would you like to deliver in a month?
Alright. How much do you need to raise the price so you can make your monthly target income without having to burn yourself out on delivery?
OK. And there you have it. Your energy just let you know the price.
The Business Case
Before you write this pricing method off as woo-woo nonsense, here are the practical reasons why I think this is the most effective pricing method for solopreneurs and small teams:
When you’re not burnt out delivering on too many offers just to scrape by financially, you can provide much more attentive, high-quality customer service.
With better customer service, you’re more likely to score glowing testimonials, repeat customers, and referrals.
With more positive customer feedback, you’ll be more confident when marketing. (You’ll also have more time and budget for marketing.)
Sometimes, customers are suspicious of too-good-to-be-true pricing. Pricing appropriately for the value that you are providing, plus all the social proof from the customer reviews, will go a long way toward building trust with new customers.
With more spaciousness and ease in your business, you’ll have more time for work/life balance and big-picture strategizing- leading to faster, healthier growth.
Could you use support pricing appropriately and marketing with exuberance? I am your Marketing Confidence Cheerleader, standing by! I still have spaces available in Season of Support, my 12-week 1:1 program- on sale for 25% off through Tuesday, June 13.
