Discover how worth, value & cost are related to your prices
Raising and selling your offer for a high-end price is a problem that many, especially female service providers, are struggling with.
I have written and helped develop heaps of vision and purpose statements. The majority is highly aspirational and has some element of giving.
We all want to give, help others in need, give to create opportunities or happiness. But receiving, on the other hand, is something that most of us don’t do very gracefully.
We have a problem receiving things…
That’s why you play down a compliment, find it hard to accept presents without immediately thinking how you can repay the giver – or you even feel guilty about charging your clients for a service you delivered and the amazing results that they achieved because of you.
And that is dangerous because there is a clear distinction between worth, value, and cost.
Let me explain…
You cannot set an amount of money that can equate to what you are worth – because your worth is infinite. Your worth is priceless.
There is no formula or reasoning that can translate your worth as a human being into any means of payment. There’s no currency for your worth, no coins, bills or numbers in your account that can express what you are worth.
So, stop assigning fictitious numbers to your worth!
You relate your prices or your financial assets to your worth as a human being and either lose your wealth (Covid is still impacting the livelihoods of so many people) or have a potential client reject your offer – then this rejection causes you to feel worthless.
What is the value that you create for your clients? How are you contributing to their financial success, personal development, living a more fulfilled life?
Understanding what your clients want to change or achieve most of all and then relating that to the work that you do with them. Expressing how your processes work and how they deliver the intended results – even beyond the time you are working with them 1:1.
If you can articulate the promise in your offer with clarity, then your audience will perceive the value that you are offering them through your services.
Part of that is understanding your target audience and their level of sophistication.
What do they already know about their “problem area”? Which information do they already have? How well educated are they? Which language do they use? How discerning are they?
If you understand what your service (or product) is versus what you are really selling – then you can imagine what the perceived value of your services is for your clients.
Let me give you an example: You are providing dance fitness classes.
If you then narrow that down to dance fitness classes to women over 45 who are struggling with losing inches off their waist and who are pre-diabetic and too uncomfortable to join the local gym.
You are not only teaching them a new skill, but you are also inviting them into a non-judgemental community, low-impact exercise and fun. And if your offer comes with nutrition advice, accountability tracking, a support group, and a platform to access teaching videos from anywhere - then you also offer them a lifestyle change that leads to a healthier life, more joy, a fitter and more desirable self, more confidence – maybe even to a lifestyle where they can stop taking medicines that deal with their current health issues.
You are not only offering a dance class but a health and fitness revolution that lets them be more active, perform better in their jobs and maybe even improve their relationships with their partners.
You are competing with doctors, (physio-) therapists, expensive health and coaching programmes…
The emotional and financial value?
And here’s where we are going to talk about costs.
Going back to our previous example – what is not joining your dance classes costing your prospects now and in the future?
What does it cost if they miss out on the promotion because they are not physically and mentally at their best?
What does treating their symptoms cost them in terms of wellbeing and money for medication and health specialist treatments?
What kind of fun and experiences are they missing out on?
Can you see where I am going with this?
Even if there’s a monetary value that your clients can put on the outcomes you are providing – there’s also a perceived value that is inherent in your service and does not necessarily show up as a number in your clients’ bank accounts.
And that’s where your pricing needs to come from. Your price tag reflects all that.
It’s not about what you are worth, it’s about how well you can articulate the value of your services.
If you need help with articulating the value of your services, then click here and check out how I can help you!