There is so much more to creating your price point than just picking a random number that feels good. So often people pick a number out of their head that they are comfortable with, without fully analysing what that number/price means for their business and the potential growth or scalability. I love Emma Isaacs’ concept of “winging it” and there is plenty of opportunity to “wing it” but similarly to the Business Chicks founder we do not believe in ‘winging it’ when it comes to your finances. Here are a few things to consider when it comes to pricing.
- Know your target market: It is important to have a basic understanding of your target markets’ income to understand how you can market your services to them
- Know your worth: It took you five years to build your skills so that you can deliver within a 48 hour deadline – make sure your prices represent the five years experience not the 48 hour turn around
- Know your expenses: Unfortunately so many small business owner’s or women in start up consider their profit as their income – not true. Here is a new equation we want you to apply –
Expenses + Income + Profit Margin = Price
- Know your industry: Stay in tune with the price within your industry to stay aligned with your target market within that industry.
- Consider a tiered membership structure: This allows you to not only have a consistent income each month but also gives your community to choose are they connect with your based on their needs and the value offered for each membership level or payment plan.
Pricing structures are rarely fixed so don’t be afraid to raise your prices according to your offers and value. Remove the emotion from a pricing structure, you are offering a powerful service that helps people, the price is simply a transaction to give your community access to your value.