Having clients pay you premium prices is what most service-based businesses want. They sell their services based on the results and value they provide. There are many business owners who do great work but they are not being paid on their value.
The business owner is not able to tap into the psychology of that value, know the language to use to convey that value, and have the confidence to stand in their pricing.
It’s the difference between being transactional with a client first when you want to be transformational with a potential client as you discuss the value you bring to the table.
The psychology of pricing allows you to position yourself in the market. The mistake an entrepreneur makes is that if they kept the price lower than their competitors, a potential client starts asking why unconsciously at first. Then starts asking themselves the following questions:
Is this person new to business?
You may have 20 years of experience and your pricing doesn’t state that. How many times have you shared your price with a potential client and they turned around and bought from someone who charged a lot more and won’t get the results you would have.
Another reason is you didn’t have the confidence when you stated your price. People feel that in you. They may not know what it is but they just don’t buy from you. Confidence in your pricing is crucial. You may be conveying that you don’t think someone will pay you at that price. Your energy around that will betray you not your words.
Language is so key when in conversation about pricing. When I say use transformational language first what I’m talking about is asking the right questions that let you know the why as the reason someone buys from you. Their why not yours. There’s always an emotional component from everyone as to the why that will dictate their behavior whether there is a contract with you or not.
Human beings are relational and even in a conversation about doing work together, they want to know whether you’ll have their back.
Your conversations need to be done differently based on the complex people all of us are. It’s not hard to figure it out if you put trust as the first component of your conversation.
Lastly, is your pricing all over the place?
It’s important to have a pricing structure. If you’ve done everything right and still got a no, it may mean not now. That was my experience when someone I had a conversation with two years earlier. The business owner came up to me and handed me their credit card and said you were right, this is what I needed. I didn’t even remember them at first. But my offer was basically the same even though it was higher but the structure made sense and they became a client.
Your pricing positions you in so many ways. Don’t leave money on the table and value yourself and your clients with the pricing that gets them what they want – the results and the transformational value.
We can help you with your pricing structure. Send us an email at LoriAnne@LoriAnneReeves.com and we will set up a time to chat.