The main reason pricing strategy is usually a problem … when they first come to me … is because they are stuck in that age-old belief that they have to charge based on their TIME. Whereas, in reality, they need to be charging based on their VALUE.
Maybe it’s worth taking the risk. It’s time to stop sitting at the roundabout, wishing you had the courage to go round it, and instead to just GO …
So maybe we need to revert to our more childlike attitude … perhaps we need to go and touch that hot plate, every now and then, to see if that “truth” is indeed true … or at least, to find out if it is true for US.
They’re paying me for the all the times before … all those times I spent practising and perfecting it, so that I COULD produce the perfect dish in just 45 minutes. Yet, if I was charging by the hour, my rate would need to be CONSIDERABLY higher at my 100th time, to reflect the TRUE value they are getting from the short 45 minutes I spend making it.
Everyone has their own perception of value and will be prepared to pay what THEY perceive as a reasonable price in exchange for the value they’re getting. Faced with a lost phone and a lost tooth at the exact same time, he chose to replace the phone over the tooth.
Maybe we just need to ensure WE have all the facts, so that we can be sure we’ll be giving our clients the best possible service. The exact service, and solution, that they NEED. And maybe, by being clear on the problem, or the wishes, of our client … of DIAGNOSING before we PRESCRIBE … maybe we’ll also help the client to see the VALUE to them, of our solution to their problem?
Things can change in terms of what’s necessary to spend time on. There is almost always a way to do something that doesn’t require you to be quite so “busy”. Sometimes you may need a bit of “invention” to happen before that’s an option, or maybe it’s a case of looking closer at exactly what we are doing?
It takes a certain amount of time to DO a certain job. And there will never be more than 24 hours in a day in which to do it. So when looking at our businesses, at our efficiency and our profitability, maybe putting more of a spotlight on TIME will help us find our main constraint.
When we’re self-employed, particularly when we’re starting out, we often focus on needing to be “better”. But maybe being “better” isn’t the thing we need to be worrying about? Maybe, instead, we just need to focus on the TASK that we are able to fulfil. Focus on being the PERFECT TOOL for that task.
Pricing in business in one of the hardest things. There is often a tendency to UNDERSELL ourselves, as you feel you can’t justify a higher price. But maybe, if we remember the factors that are REALLY impacting people’s decisions, we can stop worrying about our prices being too high.