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Pricing Your Products & Services

Apr 30, 2021

Pricing products and services is always a sticky task, but never fear - Bertie and Debbie are here!

They share their good and not-so-good pricing experiences with you and also talk about the advice they give to their clients when it comes to pricing, so you don't need to stress next time you need to do it!

 


Transcript

Bertie: Yes. Good morning, everybody. And welcome to business. One. Side's live 10 minutes, topical, Q and a every Friday at 10:00 AM.

Debbie: Hello? Hello?

I'm fine. I'm fine. I'm in a different place. Yeah, I'm just giving you my Nan's house. My holiday house, my friend retired. So it's behind the scenes. What are we talking about today?

Bertie: Today? We are talking about pricing, your products and services, because it's always one of those awkward ones. Isn't it?

Especially when you're new, it's like, what do I charge for this stuff?

Debbie: Yeah, I think it's one of the most difficult things that entrepreneurs go through, whether they've got products or services, like it's so hard, isn't it? And it's so linked up with your money values and how you feel about money and your family history and all of this stuff, and your sense of worth and deserving.

Like it's not just an easy, that's the price, although it could be, it should be. But generally we agonize over this stuff for ages and ages.

Bertie: Yes, the code shows any words, but that's never the case is that we always, always worry about it. So what, what your well, yeah, if anyone's got any questions, comments, what them in the comments as always gets around to you and answer.

If you're watching this live, that would be lovely and really help us just feel important and special on this beautiful Friday morning. All right. So yeah. So what are your top tips on pricing then due

Debbie: to. I think like it's really difficult because lots of people then look around at their competitors and they go, this is this price and that's this price, but that's where really you get stuck in the mud with that.

Cause it's like, how much is a bottle of wine? You can buy a bottle of wine for 2 99 and you can bottle it, buy a bottle of wine for 3000 pounds. So when you kind of looking around at that competitive stuff, you can get totally lost in the mire and you don't want to be pricing yourself against other people.

You want to be digging into. The transformation that you bring the value that you bring the years of expertise that you bring to the table and all of that stuff and a race to the bottom is never good. So that's the first thing. Try and avoid you, go and look around and do that comparison, but then you really need to sink in with what feels right.

The you, and I think that it's about trunk transaction, isn't it? Essentially, if you take, you can take money out of it a little bit and just think, what am I giving people? What's the experience? What are they going to get out of it? What's that end result and focus on that. And then the other thing is.

Remember that you need to pay your pension, your holiday pay, sick, pay, any coaches that you work with, any online courses that you've done, the electricity to run your laptop, your mobile phone, like there's so many costs to running a business. And I think the mistake I made when I first started my business was like, this is an hour of my time.

And I just thought what that hour would be worth. And I didn't think of all the other kind of hidden costs of running a business. And that's why I didn't really make any money for the first couple of years, because. Probably look at everything about running my business.

Bertie: Yeah. I th I think that's a common mistake.

Isn't it? When it's, especially when you have those years of experience, which, you know, without blowing our own trumpets, we do, right. We have that experience. We've been there. We've made mistakes. We've got the T share the highest, had the lows and all that other stuff, but. It's when you're doing something that comes so naturally.

So, you know, we're both coaches, so we're both probably just have an hour's conversation with somebody. Right. But those conversations you know, in to the people to the right people can be transformational. It can actually completely change either their mindset or the practical things that. Due to run their business, which can actually say them days, weeks, months, like completely changed this directory.

So that's what you're paying for. Isn't it. So if you're trying to price your product and service, it's not, you're not paying specifically for the hour you're paying for, you know what yeah. What is the result? What is the transformation essentially?

Debbie: Yeah, definitely. And I think there's another side to this that people don't really consider is that when meeting a paying for your services, They assign a value attached to it based on the price point that you give it.

So if I'm selling you a bottle of wine and I'm charging you 2 99, you're going to think this bottle of wine is going to take shit. And when you sip it, you're going to have, this is a shit bottle of wine in the back of your head. I could send you the same wine in a different bottle at a different price point, and you're going to think this is the best one ever.

And when you sit. That's the fray. Now you can't tend shit wine into good wine. That's not what I'm saying, but we have an experience when we buy stuff as well, based on its value. And it's really interesting. I put my prices up recently and a new client said I'm taking myself really seriously because they seem like serious process.

And so she was bringing more of herself to the table. She was really. And doing the work that we were discussing because she was paying a higher price point and that made a kind of pull us up and go, I've got to do this stuff. I can't find it around anymore. I'm paying this woman or this money. So I think that also when people pay stuff, they bring a different themselves to the table.

And I think that's important to think about as well. And people don't want the cheapest thing unless you're, you know, when I was on benefits. Yeah. I would buy the cheapest things. They didn't have any money, but once you not on the bread line, you buy things based on their perceived value. And based on the story that you tell yourself about how worth it you are, that's why people buy.

Yeah, goodbye Ford still goes up the motorway, but you're telling yourself a story and saying, if you price your stuff too cheaply, you might actually be putting people in.

Bertie: Yeah, absolutely. And I think the free thing, you know, like the, the value is what you were just saying is really, really important as well, because you can, you can give the same, you could have the same conversation with somebody for free, and you can have the same compensation, someone, and they've paid you a thousand pounds.

And you can guarantee the people that have pages a thousand pound for it, actually going to take those things, almost every word and take action, which is there, the patients artificially putting up your prices. That isn't what I'm saying is that if you are thinking that, well, actually it's only, it's only an hour of my time.

You know, I could give this a freak, the chances of the people actually taking action on that. Is much lower. And I've found that again from experience, as in, you know, I've done sort of free webinars, free workshops and things like that. You don't see the translate, you know, people might just watch it in the background.

Whereas if someone has paid for it, of course, you're going to pay attention, aren't you? Yeah.

Debbie: Yeah, definitely. And so I think about money as this idea of a transaction and like, what are you both saying about yourself when you put your prices and when they pay. It's the dignity for the price. Is that dignity to them paying you, is that dignity to you receiving it?

Like there's so much more than just money. It's just a flow of cash. Isn't it. And the really interesting thing about money is that it just arrives out of nowhere, which sounds a bit weird. But I remember when I first started my first business, I moved to a bigger house. And I was like, shit, how am I going to pay this?

And then I just, don't more money just naturally. And when I bought my first house, I was like, oh my God. Like all my bills have doubled. And suddenly my business stepped up to meet that. So I think there's something, there is something vibrational and we will about it. Kind of happens when you, when you level up a little bit.

It's really, it's really interesting, but I think it's just about, and it's made up, isn't it really a 10 pound note? What is it? And most of our money is just numbers in a computer screen. I don't have access to all of that money. If we all took our money off the banks, they would fold wouldn't. They like, if we did a run on the banks, there wasn't as much money in the world as we think they is.

It's all a weird construct. So, oh my God. It's just, it, it, it's, it's really interesting, but I think when you're pricing. Think about half, we think about your business. You know, I need to pay a pension. I need to put money into a pension. So each client I've got, puts a percentage towards my pension. Oh. So Katie just said I liked the idea of money as an energy exchange.

Yeah. Because we feel something don't when we, when we're pay for something. Exactly.

Bertie: I it's, it's interesting that Kate's put back. Cause that was going to be my next point. This, this piece of advice was given to me recently and it became much more comfortable with the whole concept of charging for my own time and my own services.

And it is it's, it is like an exchange of, you know, you're exchanging is not the time. It isn't the 60 minutes or the 45 minutes or 20 minutes, whatever it's, it's, it's, it's the exchange. And if you're giving somebody. Then to receive something in return. That's fair. It's a fair exchange. And I think that's always the way to to look to it and it gets easier.

Doesn't it? You know, it gets easier as the, sometimes you just have to do it. But the amount of free consultation calls, in fact that I did right at the beginning and that, and the people that I didn't think, you know, almost closed the sale as it were, but then a year later, it's almost like they're in the same position and now it's like, look, actually, So serious about this now, and then, you know, start, start charging is not working with them properly so that things can happen as well.

So what about products then? We've talked about services. What about product pricing? Like if someone's launching a new product, what do we do there?

Debbie: Oh, I love it. I love it again, it can be a piece of string. Like I've worked like I'm a business coach for the big house. So 10, you tend to work with artists and stuff like that.

And I have. I've done this painting and I'm going to sell it for 20 quid. And then I showed them people on Instagram, selling similar stuff for like 2000 pounds. And they're like, oh my God. You know, it's, it's, it's, it's, that's tricky as well. And I think if you're making the products, oh my God. If you're hand making products and you're putting love into it and it's years of expertise and it takes you time, one of the things people don't do is measure how long it takes them to do stuff.

So just do that and don't pay yourself anything less than minimum wage. And then. You know, if I'm making a bars or making a coaster or what, whatever it is, what, what, what would feel good? What feels good to me to get? Cause you don't want to be selling stuff and feeling like, oh, that feels horrible. It feels like I've undersold myself.

Cause you get that gut reaction. So think trust your intuition with this stuff. And here's the thing you have to do as much marketing to make 10,000 pounds as you have to do to make a hundred. Like you have to be present. You have to be there. You have to put stuff out, you have to send out emails. So why not make your business easier?

And, and give yourself good prices that kind of honor the work and the value and the time and effort put into stuff. And the, the materials of making those products, because you can find people charging all sorts of money.

Bertie: Yeah. Yeah, yeah, absolutely. So it's so I suppose, yeah, it's figuring out what your time's worth, isn't it.

And actually it's just, I think the not competing on price as well, because I think that it's just a painting. It's just an hour of my time. It's just there. So I think if you're, it's just like remove that from your vocabulary altogether. Actually, you know, focus on what it is like if I I'm not into art or anything like that, but if I was commissioning something, I would be excited about that.

You know, that was like a picture of my dog or family or something like that. Like that's what I'm buying. It's not experiments, isn't it. Isn't just, and I think that's how really it should be. That's how you should be thinking of it yourself. And it is very difficult, isn't it? Because. It plays on the uncomfortable feelings that we have are almost like bragging or big headedness.

But actually sometimes you should just say, what I do is fucking good. This thing is like, people will pay for that. Right. You know, this is it's it's it really is something. That people do have to get more comfortable with, like you say, it's only a few numbers in the bank. The money doesn't actually really exist.

It's just about the exchange. And if you're putting your heart and soul into it, be it, whether you're a coach, whether you are an artist or, you know, even if you're just making sort of mass producing products, if you're producing something that you love and make sure you're pressing. Appropriately, because competing on price is a downward spiral all the time.

Debbie: Yeah. You don't want to be the buck and busters of everything that you're doing. Do you don't want to be going down? I think also like, like you said, like if you're buying a painting or something, maybe that's a legacy or got some you want to pass on to children, or maybe it's something that you're going to, you're going to treasure and hold onto and love.

And that's, there's, there's value in that. And here's the thing. Why would we work and work for ourselves on the line? Why are we not creating a comfortable existence for ourselves? Like so many people are like, oh my God, I'm struggling. I'm not bringing enough money. And it's like, well, just stop your prices a little bit.

Just feel that your, your worth it, you know, look at the money stories that you're telling yourself. You know, you have to work hard to have money. Money's the root of all evil money. Doesn't grow on trees, all of this stuff that we all have swirling around in our head, it doesn't serve us. Does it? It's not helpful.

It's not getting us where. To go. And actually, if we can just think, well, I am worth it and I am worthy and I do add value in the stuff that I do is quite, and people love it. That's what you need to kind of dig into. And honestly, if people love your stuff, they will find the money for it. So when I was a single mom on benefits, I bought a sofa from hope Wells in Nottingham, which is a pretty pop shop for thousand pounds.

On benefits because I wanted a sofa that would last for donkey. She is now in the month

Bertie: I speak for how it Wells. That's like,

Debbie: that's all. I was like, yes, it's in the sale. This is a sofa. You know, I found the money to pay for that. I scrapped and I saved and I put the money aside because I wanted to make that wouldn't just fall apart in three years time.

And I wanted something that was comfortable and I wanted something it was made in the UK. And all of those values were really important to me. So I found the money. You know, it could have gone to Ikea or something, but so, and they're fine. It's grand, you know, whatever, but I love my sofa and 10 years on, I still love my sofa and I sit on it and I think, Ooh, this isn't it by the way.

But I love my sofa and. And you will find the money. So if people love your stuff, don't be like, oh God, nobody's going to buy it. Cause I've inched the prices up by 10%. They'll they'll still buy it. And they might actually love it more because they're like, woo. Look at me and buy my thousand pounds. So for, or whatever that is, you know, it's really about themselves.

Bertie: And it goes behind that stuff,

Debbie: you know, I want nice

Bertie: things. That's it

Debbie: everybody's is different. There isn't there, it wasn't. I love John Lewis and I read that Boris Johnson has just said, oh my God, his house reason that he had to redo it was because it was a John Lewis hall. And I was like, God, John knows his mind.

This is the pinnacle what's where's he shopping?

Where's he going? And this is the thing. Everybody has their own like levels. I was in a networking thing yesterday and a lady. Lulea said, I challenged you on 50 pounds. Now that's a lot of money. I feel bad charging it. And I said, I have a client that charges 2,900 pounds. So her services, she was like, what?

And I was like, people pay it because if the transformation that they get and they know that she can help them get where they want to go, everybody's version of finding you is different. So I think sometimes we bring our own. To the table or own our own feelings about money. That's not necessarily how our clients feel about money and wants to be doing the service.

Aren't we, you know, I didn't have any money, so they can't have any money, but that's not true for everybody. No,

Bertie: that's it. And that's what I was going to say, refresh just myself because I realized she was still Gary. I wasn't just a year. I was just, you've made it. It's very. The project, your own you know, sort of past history perceptions onto what you think other people will pay.

So if you've gone through, you know, like a period of hardship and stuff like that, you know, and there has been times in my life where I've been absolutely fucking broke. There's been times where it's been the opposite end of the scale. So it's very easy to project those onto other people, but a lot of.

You just don't know when, like you've almost got to get rid of those perceptions and just, and just go out there and just test it because you can very often just limit yourself, especially with pricing. We've gone. Oh, go on.

Debbie: No, I've got a final thing, but also we make assumptions about other people based on our stuff.

And I've had people say, oh, I can't afford your services, but I know that driving in a brand new convertible. It's like, you might not say you might say to you, so if you can't afford my services, but you're choosing where to spend your money and people choose where to spend their money. And I, and I've dropped my services for clients before.

And then I found out that they owned outright a house in London.

I'm adjusting my services and you add the house in them, do that wrong. And a house in London, outright in Nottingham, like capital city. So also don't make assumptions about your clients because they might have just inherited a ton of money. They might be driving around in an Audi. They might be a property tycoon and own 50 different properties across the county.

You don't know that stuff just from meeting them. We make assumptions. So be careful. You're not projecting your own stuff onto other people. Yeah.

Bertie: It's actually now one of my, and this sounds really arrogant, but I'm going to share this with you. Debit cause might be the safe view. It's now one of my red flags.

If I go through a call with somebody and they ask me for a discount at the end, It's a no, as in not a note to the discount, so no, to work with them because already they are not going to see value in the stuff that I'm going to do. Like they've already priced it cheaper. So it's, it's, it's already a, it's already a non-starter for me.

So I've lots of things that would stop me from working with people. And that's actually one of them.

Debbie: I keep it then doesn't it. Cause you're kind of giving us off a sense of them and what they would be like to work for. And if they. Discounting your services, what are they doing to their own services?

Like how do they value the things that they put out there as well? And I think that's, yeah, it's so wrapped up in all of this. Ooh, it's just money. It's just money guys.

Bertie: We've gone well over today, I have to wait. 18 minutes and 46, 48, 49. Yeah, I was going to say not to put you on the spot dude, but next week, cause I wanted to speak about loads about putting your prime. Up today. Would you like to speak about that next week? Continue do good, because I think there's a lot more, we can talk about money.

I think if one of the big things that people don't do enough, it's increased their prices for lots of different reasons. So let's talk about that next week. That was.

Debbie: Putting your prices up. Cara says that sounds good. So we'll see you back here next week

Bertie: at 10. We'll see here next week. 10 o'clock and yes, we'll see.

Thank you very much, Debbie. It's been a pleasure yet again.

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