Pricing can be a bit...overwhelming, can’t it? You don’t want to price yourself too high or people won't buy and you don’t want to price yourself too low because you’ll go broke, and rather quickly.
Entrepreneurship is supposed to offer time, energy, and work freedom, you’re supposed to do the thing that you love the most and get paid well, achieve all those goals and dreams that you’ve created for yourself, and giving like you’ve never given before.
If you can’t do all of that – if you are working 50+ hours a week (because that’s a typical work week for an entrepreneur), barely making it in your business, and barely covering your basic needs at home.
Sure, you live a life of “freedom” and from the outside looking in it might look like you’re living your dream life. But, the reality of the situation is that you might be better off going back to your 9 to 5 job, right?
At least a 9 to 5 offers some semblance security, normal business hours, a retirement package, and benefits!
But, that’s not why we became entrepreneurs, is it? We became entrepreneurs to achieve our dreams. Just somewhere along the way we got lost. We lost sight of our vision. We lost sight of our why and we got caught up in all the things that needed to be done. Instead of visualizing the things that we wanted to do to grow and expand the business that’s so near and dear to our hearts.
Pricing yourself for profit is a crucial element in being a business owner. If you want to actually earn a profit and achieve all those goals and dreams – then we need to talk about how to sell your product or service with profit in mind.
Remember, it’s not bad to want to earn a profit. God can do SO much when you see yourself as worthy of a price. That’s a space that He can step into and use you to help further His kingdom.
When it comes to pricing yourself for profit, there’s many things that we need to take into consideration. If you’re a product based business, this will be much easier than if you’re a service based business because you have metrics that you can tangably see and use as a baseline.
For example, if you’re an Etsy seller and you sell handmade jewelry – you know the cost of the material, packaging, shipping, and any seller fees that you need to account for.
If you’re a service based provider, this can get a little tricky because you’re basically selling yourself. You have to ask questions like what are my time and skills worth.
For example, if you’re in the coaching industry – I’ve seen coaches charge a couple hundred dollars to a couple hundred thousand dollars for different coaching packages.
There’s a huge range in price which can make it difficult to know how to price yourself for profit.
Here are the 6 questions to ask yourself to figure out your pricing: