4 "Pricing" Mistakes You Should Avoid

Most entrepreneurs I work with come to me with grandiose ideas about building a highly profitable business, but lack the confidence to charge what they deserve in order to reach that end. If they raise their rates, they fear rejection and that they will scare prospects away.

But the truth is that there is a direct correlation between the rates you charge and the perceived value of your services. If your rates are too low, more of your prospects will interpret that to mean lower value and will steer away.

Here are four primary reasons entrepreneurs aren't charging what they deserve and why you need to overcome the fear and confidently begin charging higher fees.
 

Focusing on the process and how much time you spend with your clients. Instead, you need to be focusing on the value that you're providing. Your clients are not looking at the amount of time you spend with them; they're focused on what you do for them. They don't care if it's live, virtual, one-on-one or group, home study or email support. If they are getting the outcome they want and can perceive the value of what they are paying for, then that's what they are focused on.
 

Setting your rates based upon the competition. This is not a smart strategy since 95% of all small businesses fail within the first five years. If you are going to copy someone's rates, check out someone who is at the top and see what they did to get those fees, to get their business, to get to that level and then start to emulate that business model. You are unique, so you don't want to do specifically what they are doing, but customize their business model to fit your situation.
 

Trying to compare your budget with those of your prospective clients. We're all different and no one has the exact same budget and priorities as you. Your monthly budget might be relatively low, but for your client, it might be worth paying much more to get a resolution to their dilemma. If it happens that your budget and priorities are higher than that of your prospect, then perhaps it's not a good fit and that's fine.
 

You don't believe you have the skill set to justify raising your fees. You tend to set a benchmark on when you should increase your rates... in 2 years, 3, years, after obtaining another degree, certification, etc. By then, you will have gained the skills to qualify raising your fees. Hogwash! There is a tremendous amount of value to be placed upon the transformation you help your clients achieve. If you continue to feed your mind with these notions, then you are never going to have the confidence to charge what you deserve. 

At the end of the day your clients are seeking one thing----to get from problem to solution. You will be amazed at the difference you see in what your clients produce when they are paying more and can perceive the value of the services they're getting. They are more accountable to themselves and you are both 100% present in the process.