One of the biggest mistakes new business owners often make is not charging enough for their services.
Sometimes it’s because they don’t understand their cost structure, and sometimes it’s because they are so desperate for the business that they’re afraid to charge more.
Regardless of the reason, charging too little is not a good idea. It will not bring you more business and it may actually drive business away.
Believe in your business and others will, too!
Never undervalue your product or service—you’re worth every penny. If you believe your product or service offers customers great value, then trust that customers will pay for what they perceive is of value to them. Your challenge is to communicate the value you offer. Consider this: if you don’t value your business offering, then why should anyone else?
“How low can you go” isn’t always the best strategy
Competing in the marketplace on price alone is a huge mistake. There’s always someone out there who is willing to provide the product or service for less than you. That’s particularly true if you’re competing with large companies or retail discounters. Rarely will you win at that game. Large organizations have more resources and can sustain a low profit margin or even a loss until you cry “Uncle.”
Learn from my experience — name your price and stick with it!
I’m sharing this with you because I know better than anyone how easy it is to undervalue yourself. One of my products is professional speaking— keynotes. I get so many offers to speak at events where the organization “doesn’t have any budget.”
In the early days, I’d occasionally accept these bookings thinking that it would be good visibility and bring in more engagements. Not anymore. No money—no speaking.
I realized that by trying to be flexible and open to opportunities, I was diluting my brand. So I established a fee structure and added a booking agent to my team. Now I have a robust calendar filled with speaking engagements and I earn a fee that is on par with others in my field.
You’re product or service is worth every penny. Never sell yourself short. You’ve worked too hard to get where you are.