One of the great things about being an entrepreneur is setting your prices and rates.
What do you charge?
What are you worth?
Both of these can both be sticky questions. On one hand, you don’t want to undervalue yourself. On the other, you don’t want to overestimate and have no sales. So how do you determine your prices and see consistent profits?
Read on for four points you can consider when determining your prices.
Price point No. 1
What are you worth?
Take a realistic view of your product and service offerings. Are you comfortable with the pricing? Would you purchase from yourself? Is your price proportionate with your time and experience in your field or business?
We all want to start out charging top dollar for our services and offerings. Consider the questions above, though, if your experience doesn’t merit the cost, you’ll constantly be stuck lowering your prices just to make a sale. Have a final price in mind and then create a plan to reach that number. Focus on building a reputation that will back that price up. In time you’ll be able to command it with no problem.
Price point No. 2
Am I undervaluing myself?
Just as harmful to your business as overpricing, undervaluing can cheapen your entire brand experience. Do your research and determine a fair market value. Allow yourself some leeway but going the cheapest route will make potential clients wonder why.
Price point No. 3
Consider the market.
Always be aware of the competition. You may not have the same prices, but you should be aware of the range of the market, as well as different price points. Having this knowledge will help you to determine your ideal clients and their habits.
Price point No. 4
It will take time for your business to build their reputation, following and support. If you are a fairly new entrepreneur, do not become discouraged by slow sales. Consistently build your content and showcase the value. It’s better to build your reputation over time and to maintain your clients.