KNOW YOUR WORTH

During a client meeting one day, many years ago, Michelle was asked "As I now have 2 properties with you can you reduce my management fee to 7%?" Michelle said sure but understand you will get the 7% service while my other clients the 8%, know your worth.

A question I get asked often when helping a new business owner with their business plan, “How much should I charge”

Only you can decide what your time, service, product, or idea is worth. Yes, research on similar products or services should be carried out prior to setting prices, but you should not go cheap just to “be cheaper” as consumers do not in many instances shop by value, value for money, yes but not cheap.

Start with the easy parts, what are your costs to provide a service or product, this can be your base as this is what you need to break even, then identify what skills and knowledge you are offering, what you represent and where you see your brand. What is your point of difference, how do you want to be seen to the consumer? Perhaps like us you will offer various packages, think about the value in those packages.

Once you have established your pricing structure, stick to it!!

By this I do not mean you can never offer a special, perhaps to clear out stock or VIP pricing but remember once you start to discount there is no going back. It would be ideal to establish any VIP pricing as part of your pricing plan, for example 10% discount for family and friends, but I would never pop this in advertising.

Be confident in the pricing you release is exactly what you are worth, so when that first client asks “can you do it cheaper” you can confidently say no. Yes some may walk away but there will be plenty that accept that you are worth it.