Beat the Pricing Confidence Barrier
Summary
In this episode of the Tilt Podcast, Joel and Jed discuss the confidence barrier when it comes to pricing in business. They highlight three main factors to overcome this barrier: understanding personal and business goals, bringing numbers to the pricing conversation, and valuing experience. They emphasize the importance of setting clear goals and aligning pricing strategies with those goals. They also stress the significance of understanding the numbers behind pricing and using them to make informed decisions. Additionally, they discuss the value of experience and how it can impact pricing strategies.
Keywords
confidence barrier, pricing, business goals, numbers, experience
Takeaways
Set clear personal and business goals and align pricing strategies with those goals.
Understand the numbers behind pricing and use them to make informed decisions.
Value your experience and use it to determine your pricing.
Move away from hourly rate charging and consider packaging your services.
Overcoming the confidence barrier in pricing is crucial for business success.
Chapters
00:00 Introduction
00:30 The Confidence Barrier in Pricing
02:25 Aligning Pricing with Goals
04:49 The Power of Numbers in Pricing
06:44 Valuing Experience and Expertise in Pricing
09:09 The Role of Numbers in Boosting Confidence
12:00 Conclusion
Breaking Through the Confidence Barrier in Pricing: Key Strategies for Business Owners
Welcome to the latest insights from the Tilt Business Coaching team! Today, we're diving into a challenge many business owners face early in their journey—breaking through the confidence barrier when it comes to pricing. Whether you're just starting or have been in the game for years, these strategies will help you set prices that reflect the true value of your work and achieve your business goals.
1. Aligning Pricing with Your Personal and Business Goals
At Tilt, we're passionate about helping you achieve what *you* want from your business, not what others think you should aim for. The first step in setting the right price is understanding your personal and business goals. We start by helping our clients calculate their "ideal life" cost—how much it truly costs to live the life you want.
This process is crucial because it gives you a clear picture of what you need to achieve financially, both personally and professionally. Your pricing should align with these goals, ensuring that every decision in your business takes you closer to the life you want, not further away.
2. The Power of Numbers in Pricing
Numbers might seem boring to some, but in business, they are your best friend. Understanding the numbers behind your pricing is essential. Many business owners set their prices based on what they think the market charges or what feels right, without really understanding the costs involved.
We often encounter clients who believe they're making a healthy profit, only to realize, after breaking down all the associated costs (like rent, utilities, equipment, etc.), that they're barely breaking even. By bringing the numbers to the table, you can make informed decisions about your pricing.
Having real-time access to your financial data through cloud-based accounting tools is non-negotiable in today's business world. It allows you to see where your money is going and ensures that your pricing is sustainable. Remember, confidence in your pricing comes from knowing that your prices are based on solid, unemotional data.
3. Valuing Your Experience
Experience is one of the most undervalued assets in business. The more experienced you are, the quicker and more efficiently you can complete tasks. However, if you're charging by the hour, your increased efficiency could mean you're earning less than someone with less experience who takes longer to do the same job.
Understanding and valuing your experience allows you to move away from hourly rate charging to a more value-based pricing model. This approach not only reflects the true value you bring to your clients but also ensures that you're compensated fairly for the years of expertise you offer.
Conclusion
Breaking through the confidence barrier in pricing is about more than just picking a number that feels right. It requires a deep understanding of your goals, a solid grasp of the numbers, and an appreciation of the value your experience brings. At Tilt, we believe that by mastering these three areas, you can set prices that not only support your business but also help you live the life you desire.
For more insights and tips, be sure to check out our other resources at tiltcoaching.com.au, and follow us on Instagram and Facebook for regular updates.
Until next time, stay confident in your pricing, and keep tilting towards your goals!
