Who should set your pricing in your business? You or the client? When business ownership began, the business owner set pricing. Today, the client is setting pricing? Why? Depending upon the type of business you have, the client believes they know the value of your services and product and will try to force what they want to pay. If you have not reviewed my negotiator series start here with "Protecting Your Profits", you will not recognize this process as negotiation. Negotiation is also taught in universities today, and since this started, it has caused many business owners to go out of business. The negotiator has also created a very dishonest trend that big business purposely marks up pricing to make you "think" you save money. Thankfully everyone doesn't believe in this process, and I am one of those people. I hate dishonest pricing.
I set the pricing for my business because I know what I need to charge to be profitable and fair to the client. I base the pricing on the value (peace of mind) it brings to your business, my experience, my skills, technical applications, continuous learning, and creating custom processes for your business. I don't subscribe to that "know your value" mess as I am priceless. I know the benefit of having a profitable business, a well-organized process, and accounting practices that support the business. I also have taken the time to determine what I would like to earn through my business ownership. Business ownership is supposed to provide a higher earning potential than employment. Yet, many business owners don't understand what it will take to achieve higher earnings potential without harming their health or creating unreasonable pricing.
Business ownership doesn't have to be a continuous roller coaster if you understand your business's cost and sales requirements. Economics and marketing trends have taken away the control a business owner once needed. If someone feels your pricing is too high and you know you have set what you need to charge, than let them go. I have learned to let go of those who disagree with my pricing or those that demand services outside of the scope of service. I have experience setting my pricing too low and the issues caused by a near shutdown. Don't go with the flow and take back your profits!
Learn more about pricing with our pricing course: “Building A Fair and Profitable Pricing Plan.”
Training Tutorial Coming Soon