If you are trying to build a successful service-based business then pricing your own worth is an essential part of setting the cost pricing for your customers.
If you set your prices at what your overheads are, or at what you would get from an employer for the same work, then you are definitely underselling yourself.
Of course you need to factor in all of your costs and all of the time and expertise that you put in, and then consider the value you provide to come up with a reasonable price for your service.
Your idea of ‘reasonable’ however might depend more on your own sense of selfworth than what you should reasonably charge. So to get you earning more in your business, we need to look at your pricing, but first let’s look at improving self worth.
Entrepreneurs: Improving your net worth by improving your self worth
I know a service-based entrepreneur who deliberately sets her prices low to include ‘anxiety factor’. She charges lower prices because the anxiety level is lower for her; she knows she is worth more than she charges. If she charged higher there would come with this an increase in client expectations of her work, and her anxiety would increase as well.
While this may be true, it’s not really a good way to run or grow a profitable business.
If we can paraphrase Spiderman – with great prices come great responsibility.
If you pitch your service prices high then you should deliver, at a minimum, good value for what you are charging. Yes there can be a burden in this feared ‘great responsibility’, but you probably already are delivering value for money, and then some!
Be Guided By Passion
Most small business owners and entrepreneurs believe very strongly in their product and are passionate about what they do. You got into this because you love what you are offering your customers enough to craft a business around it.
It is highly likely that you are already offering a fantastic product or service, backed by your own knowledge and genuine enthusiasm. You go above and beyond for your customers and work ridiculous hours just on furthering your own skills.
You just need to believe in yourself and work on your own self-worth, which brings your confidence in your own brand up to the actual quality of your brand. If you improve self worth, then you can charge prices that are fairer to you without adding to your own ‘anxiety factor’.
The benefits of increasing your net worth by improving self worth
The net worth of your business is an overall figure of what your business is worth, usually defined as your business’ assets minus its liabilities.
If you are a small business owner or entrepreneur, especially if you have a service-based business, then your net worth is your net income, or your business’ ability to bring in money.
You and your ability to earn are your business’ greatest asset.
So, making sure that you have an accurate and reasonable estimation of what your time and services are worth is vital. This includes paying your overheads and covering your business costs, but it also includes paying yourself a worthy wage for your time and expertise.
In an ideal world this ‘worthy wage’ would be on top of your overheads, more than what you would make working for an employer in the same sort of job, and with profit thrown in that equation as well to ensure your business can grow.
Need help getting paid from your own business? You need Profit First!
Tips for improving self worth
See your business value in terms of your passion for it
Defining your self worth and putting it into an actual dollar figure is an incredibly difficult thing to do. You are basically selling yourself to your customers and selling might not be your strongest suit.
If you are marketing your business’ worth to your customers, it might help not to think of the selling aspect at all. Instead, focus on your level of passion for what you sell or what you deliver.
Or perhaps consider it from the angle of getting paid for missing time with your family. What is that worth to you?
It might be more beneficial to consider what you think this kind of service would be worth to you if someone else was offering it. Don’t think about what random imaginary strangers might think you are worth paying because this is a great way to devalue yourself.
What would you pay if you were the customer? Why?
Would you be blown away by the service and the value for money if you were the customer? You better believe it. (And if not, then you might need to work a bit more on the quality of your business, but that is an article for another day!)
List all the reasons why your brand is better than your competitors and worth the money
Listing out the reasons your business or service is awesome can help you to solidify your worth and value your offerings. It will also help you to build a successful marketing campaign.
But more importantly, making this list reminds you why your business and product are a valuable asset to your customers.
Your list will be different to any other business, and should include as many points as you can possibly think of, but here are a few to get you started:
- The level of personal communication and attention to detail that you offer your clients is very high
- Your customers can trust that you will stand by your work or product
- You offer great value-adding service such as free shipping on returns, instructional videos on how to use your products, ongoing customer service for troubleshooting, guarantees or warranties, available on weekends etc.
- The quality of your materials is excellent, organic, and locally or ethically sourced etc.
- Pieces are handcrafted, bespoke or individually made to order
- Your personal skill, experience or knowledge is vast and hard to come by
- You have a great passion for offering quality work and raising the standards and reputation of your industry
- You are reliable, available and easy to work with
- Your ideas are innovative
- You cause positive change for clients
- You solve a problem your customers cant or dont like solving for themselves
- Your offering is one-of-a-kind
Through increased net worth you can find the confidence to build and grow your business, to market it well and to appeal to more of your ideal customers. And all of this comes with just a little tweak to your self-worth.
Free Money Mindset Workbook
Your mindset can be tricky to work out on your own, so to really get you started and shift that mindset from negative to positive, I’ve created a free Money Mindset Workbook to walk you through the process step by step.
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