Reason #4: Pricing Is All About the Math …NOT!
"I can't do pricing, I'm not good at math." This is something I hear often from people about why they avoid doing pricing in their business. Avoidance isn't a good strategy, you might even argue it's not a strategy at all. Your ability with math and numbers isn't an issue when it comes to pricing.
- why people believe this,
- how it hinders them and
- what pricing is really about.
Aren't You in Finance?
When I was working in the corporate world I often met new people. They'd ask what I do and I'd reply "I'm a pricing expert." Usually they'd say "Oh, you're in Finance." "Well...not exactly I'd reply."
These days people often reply with "Oh, you must be good at math." Well, yes I am but that's not the point. You don't have to be good at math to be good at pricing. If you're a pricing professional then yes you need some math skills, if you're setting prices in your own business then it's not the most important thing. I can see how people would think that pricing is all about the math and numbers. I talk about why that is in the video.
Price is One of the P's
Price is one of the P's of marketing, in many ways it's a marketing topic more than a finance topic. Marketing is more about the human side of things than the numbers side. Don't get me wrong sales, marketing and finance all play important roles.
Pricing is how you go about the activities of setting, communicating, delivering and managing your prices for the life of a product or offer. It's an ongoing activity that is only partially based on math.
As I said pricing is a multi-functional activity. In bigger companies sales, marketing and finance (at the least) need to work together. In a smaller company the same is true, which means if you're a solo-entreprenuer then you have to think of pricing in all three contexts as well.
The Problem Is Mindset
The challenge with thinking that "I can't do pricing because I'm bad at math," is your mindset. How it hinders you. In a way thinking like that sets you up for failure. Your manner when you do pricing related tasks will be "I can't."
Figure out how to shift that to "I can learn" or simply "I can".
Wrapping It Up
Watch this short video to find out more. Learn what is important in pricing and how to start shifting your mindset.
Then the next time you work on pricing listen in, notice if that little voice is telling you that you can't. Awareness is the first step to moving beyond the struggle.
There's no time like the present to get on the right track. Check out the WORK WITH ME page to find out how you can get started now.
Until next time...enjoy pricing!