Small business owners are always hard pressed for learning how to set their prices in their online businesses. Being completely honest, setting prices can be either really easy or really hard. But for your online business, you need to learn the art of setting prices or you will go broke and your small business will be no more.
If you think about it, a price really just a made up number. No one really knows how much something SHOULD cost. They just pay the price that a business owner put on the product.
Think about this for a minute. You are walking through the grocery store and buying the things that you normally buy. How often do you really stop to think about how much it costs? How often to do think about the value of the item you are buying?
Every single day, psychophysicists and small business owners are testing this theory.
They change the price minimally. OR they will change the packaging, so you are still paying the same price, but actually getting less product.
The peanut butter jars used to have a completely flat bottom. But now they have an indented bottom. So you are getting less peanut butter than you used to, but still paying the same price.
Cereal boxes will get millimeters thinner than they used to be. You still see the same box on the shelf when you buy it, so you don't notice a thing.
When it comes to your online business and setting your prices, you are doing the same thing of making up a number for what you think it should cost when someone buys your product or service.
Have you ever stopped to wonder how someone puts the value of $497 or something like that on a free facebook group? Facebook is a platform that is free to everyone. Yet a business owner will create a group for a course and give a value to you for being in that group.
Again, it's all made up. The value is what that business owner thinks it's worth (or what they have seen other business owners value it at and just copied it).
How can you go about setting prices in your small business so that you don't go broke?
First, you need to first value yourself and your time.
In my experience, I have seen so many business not value themselves or their time. They work all hours of the day and night to please their clients because they don't want to seem like they aren't available.
But when you value yourself and your time, you can actually be more available to your clients during certain hours than at all hours. You can also think about this as setting boundaries.
Sometimes you really do need to step away. You need to take a break. And when you do come back, you are much more productive because you took that break.
This happens to me all the time. I'll take a weekend away and when I come back I have so many more ideas and things flow even easier for me. The same is most likely true for you.
Set your business hours. And stick to them as much as possible. Learn to take time away. Learn to value yourself. And learn to value your time. No one can value you or your time more than you.
Next, you need to trust the prices that you put out there into the world.
If you don't have faith in the cost of your products and services, then neither will your clients. And at the end of the day, they won't buy. Or they will buy, but they will be more work than you had anticipated and wanted to put into this product or service.
Do you know that what you are offering (your products and services) are offering a real value to your clients when they buy?
Is what you are selling going to give your clients some sort of transformation?
Whenever anyone buys something that isn't food or necessities, they are expecting a transformation of some sort to happen. Usually your sales page for your product or service lays out this transformation. So are they really going to get this transformation when they buy and complete your product or service?
When you know that what you are offering is the real deal and your clients are going to be able to make a change in their lives, then the price that you put out into the world is the price that you should learn to trust and have faith in.
Lastly, you need to consider your costs when you set your prices.
I'd say all 3 of these points are important, but this is the most important piece of the puzzle to setting your prices.
How often do you sit down and figure out how much it costs to produce a product or provide a service? Be completely honest here. Most people I talk to, the answer is they don't sit down and figure out their costs.
How many times have you seen posts on Facebook about someone having a 6 figure (or more) launch? But what they really aren't telling you is how much it cost to have that launch of their product or service.
You are in luck in that you can get my free tool right now and learn to set your own perfect pricing in your business by also considering your costs.
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When you consider your costs and you consider how many of your items you need to sell in order to make a profit, this is when you really in business to make money, which is what your mindset should be from the very beginning of starting your business anyway.
You always want to make a profit at the end of the day, but until you consider how much it costs to create a product (I'm not talking about how much it costs to run your business, just creating a single product), then you won't be making any money in your business.
Setting your prices for your small business doesn't really have to be that hard.
But we make it hard because we know what it really takes to make up that number of what a person should pay when they buy our products and services.
Again, the number is completely made up and no one really knows what anything costs. They just pay the number that someone else picks to put on that product or service.
But when you do the work to figure out what your costs are and you also value yourself and your time, pricing suddenly becomes so much easier in your small business. Don't you agree?
What are still struggling with when it comes to setting your pricing in your small business?
Share this post with your friends that also own their own business to help them with their pricing.