I am an Astrology tragic. I love all things astrology and avidly follow a few key sites, but my absolute favourite is Mystic Medusa.
So when I saw an email from her today, I was so excited to open it as I always am.
But when I read it, I felt sad.
Sad for her and sad for those who fail to see the value of great online content and the amazing skills and talents shared by Mystic with her audience – every damn day!
Mystic Medusa runs a subscription-based model and charges what I think is a super-reasonably priced monthly fee for daily email horoscopes and access to other cool tools on her site like Tarot and Oracle readings (her Oracle is spookily accurate!).
Anyway, her email indicated that she had received some backlash to recently increasing her prices.
I find the fact that people reach out to complain about price increases is just absurd. Sure, if you don’t think a product or service warrants a price hike, then you have every right to vote with your feet and take your business elsewhere, that is your choice.
But in what universe do you feel you have a right to complain or express negativity about a value someone places on their talent, genius and skills?
It seemed Mystic felt she had to justify rising cost of hosting, creating content etc and it really just broke my heart.
Her stuff is amazing and the fact that she charges $9 a month for it, is a GIFT.
And people are shitty about it being $9.
To me, that is maddening.
How are we as women entrepreneurs meant to make an impact and create the lifestyle we want, if we live in fear of increasing our prices for the fear of negative reactions from our audience?
I’m not suggesting it’s possible to avoid backlash about your pricing, but I hope you can build your armor against this negativity and charge what you are worth with confidence.
Recently I saw a post on a Facebook Group by an established female coach who was offering hourly coaching sessions for $80.
Her rationale behind offering something so misaligned with her experience was that she wished there were other coaches around to offer assistance at that price when she started out.
So, let’s be clear, if you are in the philanthropy business, this is a great intention, but if you are in business business, this is a really bad strategy.
Because you are going to bring about more negative than positive outcomes by under-valuing yourself – for everyone involved.
Firstly, your perceived value goes way down. Rightly or wrongly, most people believe that you get what you pay for and cheap prices often is perceived as cheap service.
Secondly, you fail to get your clients really investing in their outcomes, because they really have nothing to lose if they don’t engage with you or your transformation.
So, results will often fall short of potential, and worse still you will probably start resenting your clients, because you end up working for less than a checkout chick at Woolies if you add up all the hours you work in a week and the revenue you pull in when you charge baby prices.
I’m not talking about newbies here, when you are starting out, your lack of experience needs to be reflected in your pricing, and it is the only time you can get away with charging lower prices.
And if you are using a lower price to start a relationship with the view to selling something more at a higher price, then that is fine too.
But don’t fall into the trap of thinking you will get more sales with lower prices, that does not always work out.
Your prices reflect a couple of key elements that are essential to business growth:
First and foremost, you want to get your clients results. And once you establish what this is going to take, then you want to take into account how you can best deliver it and set about creating your offer.
You want to pay attention to alternatives in the market, but tune in to how you value your time and the transformation you provide.
Do you help people overcome massive obstacles in their business, life or emotional wellbeing? Then take the time to really think about what that means.
Rather than thinking “what am I worth?”, or “nobody else charges that, how could I?”, instead you could think about what it is costing them to stay where they are.
It’s a slight change in perspective that focuses on the client more than yourself or your competition and my be all you need to see the true value of your offer.
If we struggle to believe in the worth of our talents, then so will out potential clients.
We all have times of fear and doubt, but don’t fall into the trap of under-valuing your products or services, as it will further erode your confidence and build resentment.
Your prices should feel like a stretch but not so much of one to make you feel uncomfortable or stressed, as this energy will literally repel sales.
Most of the time, if you are questioning your prices, try adding at least 50% and go from there…
But whatever you do, do not ask your potential clients what they would like to pay for something, unless you are having a “pay what you can” promotion.
Your audience are not your best guide to what you should charge. Your intuition and knowledge are your best guides to your pricing, and even when you receive backlash to necessary changes, stand firm.
You’ll soon discover that those clients who pay more are the ones who complain least.
Want to know exactly what to charge? Just head over here and apply for a free pricing and packaging session where I will tell you exactly what you should be charging and why.