Here are three problems your business might have if you haven’t got your price to what I call your pricing sweet spot yet.
Your sweet spot is the price where your customers will still buy from you, and it is enough for you to make a decent living.
Problem one – the confidence spiral
When your prices are too low, and you have no money to spend on yourself.
This one is horrible. And because you probably set the prices way too low because you didn’t feel confident enough to make them a bit higher, you end up earning very little money. And then, of course, you’re stuck in a spiral, because your low profits make you feel even less confident.
The end of the story – people in this situation either carry on for years in this spiral of undercharging and feeling a bit rubbish about it all, or they end up having to give up the adventure of running your own business and take a job.
Don’t let this be you!
Problem two – the low investment game
This one is when you’ve started your business on a shoestring. When you didn’t have much money, and you’ve gone low with your prices to get the work in and get some fast cash.
The result here is that you never get enough money together to invest in your business. You’ve still got the website your mate built when you started, and you never have enough cash to get going with your business.
It doesn’t have to be like this!
Problem three – working all hours
When your prices are too low, you end up having to do a lot of hours to bring in enough money to live on. And you’re often too busy to think about doing some marketing, so you also get the feast and famine situation where some months you’re busy, and others are dead.
You’d love to be able to pay a business coach to sort this out, or maybe a part-time member of staff to help out, but you can’t afford the time or the money.
Any of these sound familiar? Or maybe your business has a bit of all of them?
All of these problems are directly caused by setting your prices too low and starving your business of the money it needs to thrive.
Your business ends up like one of those sad-looking houseplants. All the leaves are dropping off, it’s outgrown its pot, and the poor thing is desperate for some Baby Bio.
But you don’t have to work in this way. And you don’t have to come for full-on business coaching to solve this part of your problem.
Would you like to feel more confident about setting the right price for what you sell?
If you think that your pricing isn’t quite right, then you’re in good company. It’s the number one challenge which holds business owners back.
Talking about pricing strategies is one of my specialist subjects, so I’ve written a book about pricing for small businesses. Sweetspot Pricing gives you everything you need to get clear about what you should be charging, and how to encourage people to pay you the right amount. Take a look.
Photo credits to Simon Goetz, Alexandr Bormotin, Alexis Chloe on Unsplash