If there is one thing I don’t like seeing, is people misjudging the value of their services.
I have seen so many entrepreneurs make this one error, and it has set them back so badly, and even sometimes ended their dreams. Some of the pricing is so outlandish and the justifications for that pricing even more outlandish.
I have always been a big believer in VALUE.
Whether we knowingly do it or not, we all seek value in our everyday lives. From an economic standpoint, we all try to get the most bang for our buck. And even on an emotional level with the relationships we have with others it applies as well. So why is it that we have this natural instinct to seek VALUE, do so many have such a hard time offering VALUE? The truth is our pride and our ego has a profound effect on our judgment.
I’ve have seen entrepreneurs coming out of coaching programs with a firm belief that there services online could easily fetch them $500+ a month per client, and all they would need to do is have just over 15 clients and they will have a 6 figure income.
To those coaches I say thank you for explaining simple math! 🙂
Here’s 5 points about value that seem to be effecting people from succeeding online.
First of all, we are ONLINE! If you think you can charge online what you can in person you are totally wrong. The very fact you’re offering your services online means you have removed the brick and mortar expense from the equation.
Your business is virtual and therefore a copy or a likeness, but it does not measure up to offering your services live. And because you have been able to reduce the overhead to facilitate your services, it would be wise to pass that value on to your clients or customers.
Second, who are you? There are too many people starting online coaching programs that jump in at the same price point as someone is already well established and recognized, with online reputations that can justify their value.
We should never mistake someone’s pricing as the going market rate. You’re going to have to start at YOUR MARKET VALUE point. When people recognize your value they will pay for it.
When you overcharge, not only will you have less clients, but the ones you have could ruin your online credibility by speaking badly about their experience (trust me, your clients are talking about you to someone). You will make it very difficult to justify your fees and kill any chance of referrals.
Third, stop making the numbers fit your needs. There are coaches that will set prices based off what they would like to earn from a group coaching program, rather than the value of the program itself. This error can often lead to programs that will not be filled by the happy, eager clients you need and want. It’s a very self-destructive way of doing business.
Forth, supply your demand. If you have no demand for your services, how can you justify charging prices that far exceed your value?
For example, if you were a consultant and the maximum number of clients you can handle per month was 20 clients, and your going rate was $300 per client, per month, but you have 60 other people that are banging down your door to work with you, then by all means you should increase your pricing.
But in the mean time, until your demand outweighs your supply, you should be charging a price point that offers value and can help create a larger demand for your services.
Fifth, Shop yourself! I have seen some of the best people in their industries do this. The have the ability to see the true value of their services. They look at what they offer and what everyone else is offering, and can give themselves a truly unbiased opinion.
They also account for the reputation factor of course. I have seen coaches hike up their prices to give the illusion that their services are worth something they are not.
Some do it out of fear that a low price point will make it seem like they are offering something inferior.
In the long run you can be certain that the true value will auto correct this strategy.
There is always one tell tale thing that happens if you have a value issue. Pricing will always be the main obstacle in your conversations with your potential and existing clients. So if you find your self spending most of your time justifying your price in your efforts to get new clients or you are faced with clients who want to leave your program, YOU HAVE A VALUE ISSUE.
If you want to run an authentic business that serves your needs and your clients, and provides great value, send me an email with the subject line VALUE and we can talk about how to make that happen. Email me at email@example.com