After receiving an email informing me that I had a couple of recommendations on LinkedIn, I logged on to have a read and approve them. As I did, I noticed a question in my news stream-it was from someone I did not know and it was asking about pricing for sales. Maybe it was the way it was worded, or maybe it was because pricing and beliefs about money cut to the core of what I talk about, I decided to have a look at the comments and replies that the person had received.
I am sure that everyone meant well, but…again, ouch! Maybe the responders really did think that they were helping, maybe they were sharing their personal experiences, maybe they think that they have the inside track on pricing…but, really, ouch!
If I based my prices, fees and investment points on the advice of these people, I would be going out of business very soon…or, at the very least, downsizing my life. It is a fact that everyone with an internet connection and an opinion can position themselves as an authority these days. This has its uses but for things like pricing, which most people have really limiting beliefs about, this is not good. Not good at all.
Here is some of the nonsense that was written…
- Work out what you want to earn, work out how many hours you want to work, and then charge accordingly.
- Do the work and then ask the client to pay what they think is “fair”.
- Look what other people are charging and then just undercut them.
- Look what other people are charging and consider what you think is “fair” and “reasonable”.
I am sorry, there were more; I just cannot bring myself to write them. It is too painful.
I decided not to respond. I do not want to waste my time having an internet spat with people who do not have a clue and, in any case, arguing with people with limited or no knowledge massively reduces your credibility. On top of that, whilst an opinion was asked for, mine was not, so I would rather share with my own “friends” (that’s you by the way), who do care, do want to know, and do want my opinion.
So, here are my answers about pricing for sales…
Sorry? Why? Oh, okay…
- It’s not about you. It’s always about your client. What on earth has what you want to earn got to do with the pricing strategy of your product or service? Absolutely nothing, that’s what. Nothing. Nil. Nada. Zip. In any case, working out what you want to earn and breaking it into an hourly rate is called employment. You are trying to run a business. Get over it already. You should charge based on the value that you add for your clients. Period
- Really. Are you joking me? Fair! Fair! Fair? Who the heck defines what fair is? Your client? That’s not fair. One person will spend £15 on a bottle of water in a hotel because it is in a blue bottle and they think that it is awesome. Another carries their water in in an Asda bag. Get my point? Leaving your prices, your profits, your business and your life to be dictated to by someone else’s interpretation of fair is somewhere on the South side of ridiculous and well on the road to just plain stupid. I refer you to point 1, charge based on value.
- No. Most people undercharge. Most people have limiting beliefs about price. Most people are stuck in price wars. Most people do not have a clue. Most people have scarcity beliefs. Most people are never going to charge what they are worth based on the value that they provide. Again, your fees should represent the value that you provide for your clients.
- Charge what you think is fair and reasonable. Hmmm… Again, you are not your client. If you have limiting beliefs, where does this leave you? Charge based on the value that you deliver for your clients.
Get it? Got it? Good.
I want this to be an awesome year for you and it will not be if you have limiting beliefs about price, if you listen to advice from really average people (no matter how well intentioned they are), or if you do not keep your focus on the massive value that you add for your clients. As such, I am going to be launching The Gavin Ingham Academy to the world. Previously, unavailable other than to a few select clients, my academy will help you to be more, do more, sell more, and have more, in business and in life. Make sure that you are subscribed to my newsletter (https://www.gaviningham.com/gavins-success-newsletter/ if you were forwarded this by a friend or colleague. I will be making a fantastic offer early in January for readers only.
I am sure that you are well on the way to Christmas and it is this time of year that people tend to get distracted. I believe in enjoying everything life has to offer so make the most of it but do keep prospecting, selling and doing the important stuff now. Keeping things going at the back end of December does help you to start the year with a bang, not a massive business hangover. And, if you’re thinking about 2017, why not give me a call to discuss how I can help you +44 (0)845 838 5958.