This is the second hardest conversation for entrepreneurs and business owners to master. Right after explaining what you actually do, which can be challenging if you’re a professional adviser or coach, is….drum roll…..saying your price to your customer.
Raise your hand right now if you’ve mumbled, stuttered or uhmmm your way through the question: so what do you charge?
Go ahead, no one can see you. Almost every mentoring client I have bumps up against this hurdle in the race to have a profitable business. There are so many hurdles you can’t control like the economy or your best customer cutting back that it makes total sense to crush the hurdles that you can control. Like getting to be an expert at saying your prices.
It’s Hard to Say Your Price
Owning your own business is like cheap therapy. All your sh*t comes up. Whether it’s a need for security, fear of being exposed, or being controlling, your business will pull that to the surface. Especially the fear of being rejected. Everybody fears that. And, that’s essentially what’s at stake when you answer the question: What’s your price?
There’s training for that!
The Olympics are around the corner. I’m over-the-moon excited to watch because I love the Summer Olympics. A sprinter way back in the day, I totally respect the level of commitment and training it takes to reach that level of success. That’s the same commitment it takes to be a profitable entrepreneur. You gotta work at it. So, if you want to get a gold medal at saying your price and getting it, start training!
5 Tips to Say Your Price Powerfully
- Don’t respond immediately to the question. Pause to silently celebrate the moment. You are this close to a new client! Yipee. Also, it makes you look thoughtful.
- Smile and show your gratitude and excitement. Customers buy with their emotions. You want to strengthen that bond of trust and plant the seeds for collaboration
- Re-confirm the benefits to your client and great work you’ll do together. Clients rationalize their emotional purchases with logical reasons.
- Never give a naked number. Wrap your price in context. Explain the number so you client can see the value
- Practice saying your number every chance you get.
Of course, this is the beginning of the conversation, not the entire thing. There’s likely to be some negotiation (which is just purposeful conversation- don’t freak out) And, you’ll need to use your listening and probing skills to discover and remove any other hurdles to working together. At least, you’re off to a great start by saying your Pricing Statement.
Funny story. I courted my first corporate client for months before he’d take a meeting. Then, there was a series of meetings with the HR director and director of Employee Relations. Then, a mini-audition. By the time he actually asked me to name a price, I was so thrilled (and frankly surprised) I forgot to say it. Plumb forgot. Had to call him back. When I did I was so flustered and nervous that I said the wrong number. Way too low. Of course, he jumped at it. A costly, humbling mistake that I used to create my Pricing Statement approach.
A Pricing Statement is your explanation of your price. Sounds simple, right? It is, after you’ve ironed out the details like your context, big $$ Why, the words to say and of course- your number! It’s like an elevator pitch for your price. It helps to have a Sherpa (wink)
Once you understand how to create one you can apply that to your other products or services and use it for future ones. And, honestly, it’s great not to have to think of something to say in those moments because they are kinda stressed. Your pricing statement will just flow off your tongue easily, confidently.
TUESDAY, JUNE 19 11 am PT/ 2 pm ET
Recently, two different studies shared disappointing news for small business owners that made me get out my cape. Did you know that more than half of small business owners go without pay? Or that $25k is the typical annual salary for a microbusiness ower (less than 10)? I can’t help think that some of those folks are just afraid to say their price and accept way less than they should. Maybe that includes you too.
The solution? Share my approach and create a new learning tool to practice. Viola- Say it Summit is born!
At the Summit-you’ll learn how to create your Pricing Statement. So, the next time someone asks you’ll be ready. Very cool=>6 brave, lucky people can become my mentee on the call. We’ll work thru your statements together live on the call. Pretty exciting stuff. I’m covering all those conversations that are hard to have. You can register here. Busy? Sign up and get the replay.
PS Speak up- what other conversations should an entrepreneur or business owner master?