In the freelance, contractor, and small business world we talk about price as if it’s some sacred ritual no one is supposed to discuss. You’re criticized if your prices are too high and snubbed if your prices seem too low. Isn’t it truly insane? Well, to be quite frank, I’m sick of it. YOU know what your material is worth. YOU know what your business costs to run. YOU know who your ideal customer and target audience are.
So, guess what…. F*#K it!
KIDDING….
But, really let’s debunk this, if you’re finding you have some of the same frustrations I list below:
- I feel I have set a fair price but others, outside of my business, tell me it’s too high.
- I am afraid if I don’t lower my prices, I won’t get clients.
- If I lower my prices too much, then I can’t support my business or myself/staff.
- I feel like the prices consumers will pay are not a fair wage to myself/staff.
- Setting prices overwhelms me and honestly, scares me.
- I feel I have set a fair price but others, outside of my business, tell me it’s too high.
First and foremost, you have to set your price and stand behind it. Would you make a product you don’t stand behind? (You’re in the wrong place if you answered yes to that question. Please exit and unfollow me). No, no you would not. You started your business because you believe in your product and yourself. Believing in both of those mean you stand behind the goods you offer, the value they give the consumer, and the worth each item holds. Standing behind your brand means you believe in it and everything it offers. This includes price. You could sell something for $.01 and there will still be people who tell you “It costs too much” or “that’s too high.” Guess what, move along from that conversation. Know your business, know your budget, and BACK YOURSELF. No one outside of your business knows anything about what’s going on, on the inside.
I am afraid if I don’t lower my prices, I won’t get clients
Listen, if the client doesn’t want to pay your prices, your value, then you don’t want them. There is an image going around social media that says something to the effect of –
$50 paying client tells you every minor detail that needs done and changed
$50,000 paying client says, “ok, money sent”
There are two reasons you want that second client. Firstly, it’s a great commission and business decision, probably a lasting relationship as well. BUT, most importantly, you want that second client because they understand your value and they are paying you. Yes, they are paying you $50,000 but they understand you are the “expert” in this situation and on this topic. They trust you enough with the project or they wouldn’t have hired you. These are the clients you want. Do they take longer to get? Usually. But they are WORTH IT! Never lower your prices just because you are worried you will miss out on clients. When you are 1,000% behind your business, it shows. Trust me.
If I lower my prices too much, then I can’t support my business or myself/staff.
Since this is a blog post, not a two-way conversation, that means I have to make some assumptions. I’ll make the assumption, this is because of a reason like in #2. You are scared you won’t get clients, so you want to lower your prices, but you already set a “reasonable price” to make sure your business still operates and your staff is still paid. Does that sound right? Great.
Here’s what you shouldn’t do – LOWER YOUR PRICES AND LOSE YOUR DREAM.
It was said best by a guest on Season 1 of #HumpDayHustle, “if your business fails, that effects no one but you.” People could be sad for you but they will go out and find a new business. They will forget about yours. You know who won’t? You. I’ll touch on this more a the end. But in the meantime, please just erase this narrative.
I feel like the prices consumers will pay are not a fair wage to myself/staff.
The great news? There are literally over 7 billion people in the world. (I just searched it and according to Google, the world population is 7.9 billion as of June 2021, according to the Worldometer). The clients you are looking for, the ones who will value your products, the ones who will pay a “reasonable” price, are definitely out there. You just have to work a little harder to narrow them down and reach them. You’ll find them. And in the meantime, offer some discounts, do a giveaway on socials, a raffle in a storefront, give your friends or relatives some free samples, etc. Does it suck to do free work? Usually. But, it pays off in the long run. Listen, nothing in business is easy and if it is, I promise it won’t last. Being an entrepreneur isn’t for the faint of heart. You have to WORK and STRATEGIZE.
Settings prices overwhelms me and honestly, scares me.
Yeah, probably. I’m right there with you. It’s hard at first. But, do your research. Look around, ask around, follow similar people, and dig deep. THEN, look to your accounting. What does it cost to run your business? What does it cost to pay your employees? Maintenance? Supplies? Insurance? Rent? Employee benefits? And the list continues. It’s going to be scary and if I was a betting woman, I’d bet an entire year’s salary that you won’t get it right the first time. It’s just not realistic. But, learning to realign and re-evaluate when needed will help you drastically. Also, KNOW YOUR WORTH & STAND BEHIND IT.
As I said above – Here’s what you shouldn’t do – LOWER YOUR PRICES AND LOSE YOUR DREAM.
It was said best by a guest on Season 1 of #HumpDayHustle, if your business fails, that effects no one but you. Please could be sad for you but they will go out and find a new business. They will forget about yours. You know who won’t? You.
The blunt truth, there are hundreds if not millions of businesses just like yours. Mine too. Graphic Designers are a dime a dozen. And as cliché as it may sound, none of those are yours and that’s what sets you apart. Do NOT let others rob you of your dream because they don’t see the value. Thank them for their time and move on about your day. I know life isn’t always rainbows and sunshine, so let’s say you are in a pinch and you NEED that sale or commission (we have all been there), offer them a “one-time deal” and do the work. Then, when you present them with their product thank them for their business, tell them how much you appreciate it, and ask them to leave you a review somewhere (Facebook, Google Business, Yelp, your own website, etc.) A review will get you so far.
I am told more times than not that my prices are “too high”. And yes, it was awful at first. Now, it’s ok. I say thank you and we move on. I stand behind my value because I know what my work offers. I know the number of billable hours that I DO NOT bill my clients because I found something I want different and morally don’t feel right charging them for. I know the number of giveaways I do. I know the extra effort I put into free items. I also know that I work with clients, a majority of the time, when they are starting out and truly cannot allocate money for a certain thing. But, believe I ask for a review in return every time. Not all of them give the review and that’s ok. I can walk away knowing I did my best work I could, they received it, and I will know better next time when they ask for a project.
Remembering it’s just business but it’s your baby is where things will start to change for you. If you haven’t taken anything away from this, I’m going to leave you with one last reminder of another image going around social media.
It’s a picture of a large ship. The text reads something about having to call in a technician. The tech looks around at the engine for a while, does the smallest tap, then charges them $15,000. The person who hired him is outraged at the cost. “That’s absurd”. The technician calmly explains the tap only costs a very small amount, his experience, years in the field, knowing where to tap, how to tap, and how much to tap are what costed over $14,000.
THAT is how you run your business. And don’t you dare look back out of fear or because you are being bullied into changing it. Believe in yourself and your product.
all the love & espresso,
kierst