When you're first starting out, whether start a new business, or a launching a new product or service, it can be really tricky figuring out what to charge.
You don't want to charge too high and have no one buy it (or feel Like a fraud!)
But you don't want to charge too low and make it look like it's not worth much.
Maybe you question whether you're worth charging higher rates...? After all you're only just starting out.
Or perhaps you worry if you charge too low you'll never actually make any money...?
Maybe you already launched and charged what you believe it's worth but now you're getting crickets - no-one is buying and you're worried to charged too much...?
Figuring out the right price when you're first launching can be a minefield!
And can leave you feeling confused and battered and stuck in Indecision Alley - too afraid to get it wrong so you don't take any action.
The thing is, this is actually a totally normal reaction to an incredibly difficult situation!
How on earth are you supposed to know how much something is 'worth' before you've actually even launched it??
Hopefully you've got a pretty good idea of its potential value but until you start to seeing actual, repeatable client results, it's hard to back that up.
Plus you're still learning. You're gonna make mistakes.
You're going to have lots of learnings that you'll feed into the next version and the version after that.
Very rarely does the the first version of ANYTHING survive the first encounter with a paying client!
And that's a good thing.
So, it's completely normal to struggle with what to charge when you're first starting out.
But here's the thing,
DO NOT let worrying about getting the pricing right stop you from launching!
Your clients need what you have to offer them.
AND pricing isn't set in stone - you can (and should) change it often!
Because pricing right is a journey.
It takes time, knowledge and confidence to build up to what you ultimately want to be charging so you can pay yourself what you're worth.
So where do you start?
Well there's one strategy that has helped thousands, if not hundreds of thousands, of entrepreneurs get their launches off the ground AND build their confidence and credibility.
And that is to start by offering a 'special' price.
This 'special' price is a limited offer that may be significantly low than what will be your 'normal' price.
Usually you would set conditions around this Offer, such as:
for the first five clients, or
the initial 'pilot' programme
valid until 'x' date, etc
The important thing is, once these criteria have been met then the price goes up.
You may choose to share what the 'normal' price will be after the offer finishes, either on your website or sales copy, or during a sales call, depending on your sales process.
However you don't have to specify what the 'normal' price will be, particularly if you're still not quite sure and you don't want to commit to a specific number just yet.
In that case you just reference that the special price is a significant cost saving and that the price will be going up significantly once this limited offer is done.
Offering a limited time special price works for several reasons:
1. This helps take some of the pressure off 'getting it right' straight off the bat when you're still figuring things out - remember, imperfect action is better than perfect inaction!
2. When you're first starting out you get paid in experience as well as revenue.
The strategic value you get from the feedback, case studies, experience and confidence is often worth way more than the additional revenue you might've got if you'd been able to charge full price.
3. By making it a limited time offer and showing (or indicating) that the 'normal' price will be higher, you're demonstrating your true value, thereby increasing your perceived credibility, while still...
4. Making it easier for people to purchase while you're building up your sales skills and confidence.
5. People love a 'bargain' so will be more incentivised to purchase at the 'discounted' rate.
6. The limited time offer implies scarcity and good ole FOMO (Fear Of Missing Out) which is also another helpful driver to purchase.
Under this scenario, because it's a strategic decision, and because it's for a limited time and/or quantity, the actual price you put on the offer is less important as you won't be stuck with it for long (remember, you put your prices up once it's done!)
You want the special to be high enough to demonstrate value and ensure a certain level of commitment from your clients, while low enough to make it easier for people to purchase (and for you to sell).
Once you've started getting more clients, and you've built up your credibility and your confidence, THEN it's time to get your pricing right so you can pay yourself what you're worth.
(Check out this article that explains The 4 Key Pricing Methods For Service Based Businesses that you need to know.)
Remember, pricing right is a journey.
The important thing is to start!
Once you're on your way and it's time to get your pricing right so you can start to pay yourself what you're worth.
Because You ARE Worth It!
Done your first launch now you're ready to get paid what you're worth?
Book your complimentary Pricing Discovery Session Today.
And You're Worth It.