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Money Mindsets Can Impact Your Pricing

A couple of years ago, I heard the term “Money Mindsets,” but I did not know what that meant.  I started using the terminology once I learned it’s how we think about money.  Each person thinks differently, and often this can be a challenge with pricing.  Many people sadly take money advice from non-professionals.  Here is a snippet from an article that I was reading.

 

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The person writing this article is an author and she noticed after she wrote a book about how to time management for entrepreneurs, the people started also asking her about how to manage money.  Often people see this as an opportunity to make money by giving money advice, but that does not mean they know how to give that advice, just as she admits in this article. 

Many business owners will ask other business owners without professional accounting experience how manage their business (accounting) instead of paying a professional for professional advice.  Sadly, down the road, those business owners end up with fines and taxes more than what they would have paid in the beginning.  Accounting helps the business owner to organize their business transactions and helps to create an organized business.  However, people think the person helping them with their accounting should only be paid as a college student on internship.

Since the marketing boom of allowing the client to set pricing is so big, we have to remember; this is just another negotiation tactic.  The money mindset to pretend they don’t have the money is part of what I see the author of this article calls the “Houdini Budgeting Trick.  I thought this was hilarious, but it’s true.  People afford what they want to afford, and sadly they think this means it’s alright to underpay people.

 

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The houdini system pretends as if you do not have the money although you just move it to another account or you set your mind to pretend a certain bank balance is poverty.  If someone believes they cannot afford your fee, say alright and thank you for your inquiry.  Marketing is teaching business owners that everyone is supposed to negotiate.   You do not have to negotiate if you do not want to because if you are already pricing fairly, you will lose money due to this mindset.  Be willing to let people go and stand firm on your pricing.  Eventually, you will see your revenue and profit increase.


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