If you’re looking for ways to assess value and better price your service, you’re on the right page. Many coaches, speakers, service-based practitioners, celebrities, and artists create programs and enroll clients, and yet they’re still not happy with their professional situation. They usually under-charge and don’t know how to attract dream clients. In the end, they spend a lot of time chasing potential clients and being worried about the next month’s income. Let me tell you how you can overcome this problem in three points. Here’s how to price a service or product based on its worth.
How to Price Your Service And Give Value to Your Program
1. Keep Standards High
Only you know when you’re creating a program if it’s really something representative of your value. If you feel like you’re over-giving and don’t feel like you’re receiving enough back, there’s a challenge and a problem.
Many times, this can be monetary for people. They gift too much and don’t feel like they’re receiving enough money back. More generally in life, it can be where you feel like you’re giving more than you’re receiving. You aren’t getting back what you believe you deserve from others.
I want to encourage you in understanding that whatever you’re doing or creating, it’s important to price your service or programs from a place you feel is representative of your value.
It’s one thing not to feel confident and think, “Because I’m brand new and I’m not confident, I have to keep my pricing low.”
With good coaching and somebody helping you look at your life experience and life lessons, you’ll start to see your true value is more than you perceive it to be. You can also rely on the wisdom and knowledge which you’ve gained over the years.
Don’t take just one glance and think, “Well, my pricing should be this.” Rather, look at it and the journey you’ve been on break down your most valuable experiences and how you incorporate them into your product. This will help you understand the value of your products in both your life and somebody else’s. Create your programs from that perspective to improve your service pricing strategies.
2. Stand Firm and Have Confidence in What You Offer
Sometimes, when you try to enroll a customer on the phone, they push back. They’re pushing back on pricing because they lack confidence. They lack confidence if they can get a return on investment or they can achieve their dreams or visions. These people just don’t believe they can be successful, and in many cases, they are apprehensive about spending hundreds or thousands of dollars on a program.
This lack of confidence can easily rub off on you. It can make you doubt whether you’re pricing your service or program correctly. You may ask yourself, “Am I giving too much value to what I’m offering?” Or you may think, “Perhaps I’m still not qualified enough to ask others to pay such a price for my product.”
Either way, it can cause you to lower your pricing, lower your standards, and ultimately lower your value.
I want to encourage you not to lower anything. In particular, in the enrollment conversation when the pricing objection comes up, stand your ground. Keep it the same.
We’ve all made mistakes where we step back and we try to accommodate somebody else but are you accommodating your customers or clients because you really want to make this thing work or are you doing it because you’re lowering your value?
If they are coming from a place of weakness by not being confident and then you do the same, you now have two people with lower standards and value. Neither will get any satisfaction with the program. You have to be firm when stating your hourly rate and be confident enough to say what you offer is perfect price.
3. Meet Somebody on a Higher Ground
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— Ted McGrath (@ted_mcgrath) April 19, 2018
How is the coaching relationship affected when both people lower their standards?
You can correct it immediately once you up your standards. As a coach or service-based practitioner, meet your clients in a place where you say, “No, I’m going to hold you to this, hold yo to your vision, and encourage you to step into a bigger decision.”
What you’re doing is upholding your vision and value. You’re asking them to step up to a bigger vision and value in their life and you’re going to meet them on higher ground.
The next time you’re in such place and you feel like you need to get the sale or you want to get those clients in, ask yourself these questions:
- Am I sacrificing my standards and value?
- Am I sacrificing my integrity in doing that?
When you price your service stand up for your value. You can always create pricing thresholds for your program. For example, you can have a 6-month enrollment program which is more affordable than the whole-year counterpart.
You can also have different payment plan options. You can let your clients pay you in three installments but don’t drop your pricing and your value in favor of somebody else. You are worth your price. Always believe you have a fair price over your competitors and you are an excellent service provider.
If it’s a $10,000 program, it’s a $10,000 program. If it’s a $30,000 program, it’s a $30,000 program. It’s how to set prices for services.
4. Have Options But Don’t Compromise on Value
When you’re about to make the enrollment call, be ready with the options available to your clients. The paid-in-full pricing should always be discounted by about 15% to 20%. You want to encourage your clients or customers to pay in full and make the whole financial commitment.
Paying in full will also make your clients feel better. With this, they know they are showing full commitment to your program. You’ll feel better about yourself, the price of your service, and what you’re doing as well.
Hungry for more tips? Watch this video from Derek Halpern and find out the right way to price a service or product:
When you know how to price your service and are aware of the different pricing strategies, you’re fully standing in your value. You’ll continue to grow, be accountable, and feel good about your business, pricing, and value in the world. Charge clients according to your worth. Be confident and unwavering when setting prices for service-based business. You dictate your worth, not someone else.
Do you feel you’re undercharging your value in your pricing? Share your thoughts with me in the comments section below.
Editor’s Note: This post was originally published on September 18, 2017 and has been updated for quality and relevancy.