The 3 Signs You Should Be Using Value Based Pricing
How do you know if you should be using Value-Based Pricing to price up your services?
Value-Based Pricing is the most powerful of The Four Key Pricing Methods For Service Based Businesses.
However it's not always easy to tell if it’s the right move for your business.
Or why you should bother using it.
Well, there are actually a number of signs that indicate Value-Based Pricing is something you want to incorporate into your pricing methods.
Here are the big 3:
#1. You’re maxed out, but not earning what you expected
The first sign is where you’re maxed out, you're already operating at capacity and can't take on any more clients.
And yet you're not earning the mega bucks you thought you would be.
You’ve tried just working harder, maybe even smarter, but you just can’t work any more hours without burning out. You’ve plateaued.
#2. You know you’re underselling yourself but just don’t feel comfortable charging more
Alternatively, you may know you're underselling yourself but you just don't yet have that courage to put a higher price on the table.
Perhaps you're in the helping industries and it feels bad or wrong to “make money” off helping people - especially when it comes so naturally to you and you love doing it.
So you end up over compensating, and giving so much of your time, energy and expertise away for free, to the point where you’re exhausted.
#3. You find having pricing conversations really awkward and uncomfortable.
As women, we’re often not encouraged or rewarded for putting our hand up and saying “We’re worth ‘x’”. Or that we're really valuable, or really good at what we do.
Historically we’ve also been excluded from “money conversations”, so we’re not as familiar or comfortable about talking about how much things cost and why.
When we then get into business this can lead us to feel uncomfortable and awkward having pricing conversations.
So we either avoid having them (Quote procrastination anyone??), or duck and dive when asked how much something is, and feel apologetic if it sounds like “too much”.
This can lead you to feeling burnt out (because you have to work even harder to make ends meet), resentment (because you KNOW you’re not being properly rewarded) and ultimately feeling like a failure because the business didn’t turn out as you expected.
So, did you identify with any of those three scenarios?