Reason #10: Lack of Confidence
Pricing when done well, helps your business run more smoothly. However, setting the right pricing in a poor way makes your life difficult. One of the top 10 reasons small business owners struggle with pricing is they lack confidence in their prices.
Why is that?
What can you do about it?
In this episode, we look at the reasons why feel so uncertain and what you can do to start building more confidences in your prices and how you communicate them. See the transcript at the bottom of the page.
How you know you lack confidence?
Signs that you lack confidence include:
- procrastinating pricing tasks
- not sending offers or posting prices when you know you need to
- constantly asking others what you should do
- freezing up / stumbling with your words when someone asks what do you charge
- softening the blow when delivering prices by offered discounts / deal sweeteners before they've responded to the offer
- getting defensive when challenged on your price, etc...
You get the picture here when you don't feel confident about your prices or where they came from or what you offer or about yourself, this will impact every aspect of pricing in your business. In my experience lack of confidence is one of the most important factors getting in the way of small business owners feeling comfortable with pricing. Think about the last few times you had to deliver a price - what did you feel? What went through you mind? How did you react?
Why do you have this feeling?
For starters, pricing is not something you're taught in school. Just like anything else when you don't understand, it makes you feel uncomfortable. Unlike other things pricing is something businesses will get challenged on. Being challenged on something you don't feel comfortable with - at the least that'll make you squirm and the worst you'll simply avoid it.
However once you start learning more about pricing, it's demystified and you become more comfortable. At some point it becomes old news, until we are thrown outside our comfort zone once again. It's the same with pricing.
Secondly, you may have the information, the resources and the tools to implement your pricing strategy, but you have no idea how to use those things to do it. What can you do first? How should that influence your prices or should it?
Last but not least, talking about pricing is like talking about money. Most people aren’t comfortable with talking about money. In some cultures it's even a taboo. You may feel like it's an invasion of privacy. All these things add up to you avoiding or fumbling around money discussions.
As a business owner you have to figure out how to overcome these things or hire a sales person to do it for you.
What Can You Do About It?
Your skills and confidence must be built over time. Most business owners won't just wake up one morning and be ok with it. It will take some time.
You now know that there are pricing experts out there, like me, who can help you. Start following them on social media and consuming their content. You can go on my Facebook page, for example or join my FB group where you can post questions. Just by being exposed to what people, like, post you will start to learn and think differently about your pricing.
Overtime as you build your knowledge, skills and ability to implement around pricing effectively your confidence grows. I see it all the time, with small shifts in thinking, big progress can be made.
Wrapping It Up
If you haven’t seen the top 10 reasons you struggle with pricing go back and have a look here.
Until next time…enjoy pricing!
PS: When you’re ready here are 4 ways I can help you learn to set the right prices and close more deals.
- Grab complimentary access to my video series and checklist on what to do when your customer says “That’s too expensive.”
- Join me for the next complimentary 5 Steps to Pricing Success LIVE Webinar.
- Watch my weekly Facebook live show, Live with the Pricing Lady and learn from me and my guests.
- If you feel now’s the time for you to get better at setting prices. If you’re ready to invest to boost your income by closing more deals at the right prices then book a Discovery Call with me.