Unlocking Sustainable Success: Common Pricing Mistakes Heart-Led Entrepreneurs Make
Understanding the True Cost of Time
When setting prices, many heart-led entrepreneurs overlook the true amount of time invested in their services. It’s not just the time spent directly with clients but also the prep work, administrative tasks, and follow-up. Consider every hour you dedicate to your business when setting your prices. For example, if you spend 30 minutes preparing for each client session, another 30 minutes on administrative tasks related to that session, and an hour in the actual session, you’ve already invested two hours. These hidden hours add up and should be reflected in your pricing to ensure you’re compensated fairly for your total time investment.
Tech and Overhead Costs
Running a business involves various expenses, from software subscriptions to office supplies. Don’t forget to include these overhead costs in your pricing structure. Knowing your business budget is crucial for sustainable pricing. For instance, if you’re using premium software tools for client management, marketing, or project management, these costs should be factored into your pricing. Similarly, physical overheads like office rent or utilities are essential components of your overall costs. Ensuring that these are covered will help you maintain a profitable and sustainable business.
Diversifying Offers
Focusing solely on low-ticket offers can be limiting. While it’s wonderful to cater to those with smaller budgets, it’s essential to diversify your offerings to support business growth. Consider group programs or scalable products that require less individual time but can reach more people. For example, instead of only offering one-on-one sessions, you might introduce group coaching programs or digital products such as e-books or online courses. These can generate additional income without significantly increasing your workload, allowing you to serve more clients and grow your business effectively.
Balancing Personal and Business Needs
Your pricing should reflect not just your business expenses but also your personal financial needs. If your business is your primary source of income, ensure your prices allow you to live comfortably and plan for future growth. Think about your personal financial goals, such as saving for retirement, buying a home, or funding your children’s education. Your business should support these goals, so your pricing needs to cover not just your business costs but also your personal financial requirements. This holistic approach ensures you’re not just sustaining your business but also achieving personal financial stability.
Recognizing Your Worth
Just because a task is easy for you doesn’t mean it lacks value. Many entrepreneurs undervalue their services, leading to unsustainable business practices. Trust in your expertise and set prices that reflect your worth. Remember, your skills, knowledge, and experience are unique. Clients are paying not just for your time but also for the value you bring to the table, including the results you can help them achieve. Recognizing this can help you set prices that are fair to both you and your clients, ensuring a sustainable business model.
Avoiding the Lack Mindset
A scarcity mindset can lead to either undercharging or overcharging. Striking a balance is key. Avoid pricing based on fear and instead focus on the value you provide and the abundance of potential clients. When you price your services out of fear—whether fear of not getting enough clients or fear of not making enough money—you can end up with pricing that doesn’t reflect the true value of your work. By focusing on abundance and value, you can set prices that attract the right clients who are willing to pay for the quality you offer.
Building an Audience Takes Time
Patience is crucial when growing your client base. High-ticket items can sell, but it might take time to build the trust and reach necessary to command those prices. Stay consistent and patient. Building a loyal audience often involves nurturing relationships, delivering consistent value, and establishing your credibility. This process can take time, but it’s worth the investment. As your audience grows and becomes more engaged, you’ll find it easier to sell higher-ticket items and build a sustainable business.
Confidence in Your Pricing
Your confidence in your pricing impacts how clients perceive your services. If you believe in the value of what you offer, it will resonate with your audience. Ensure your prices feel right to you. When you’re confident in your pricing, you communicate that confidence to your clients. This can make a significant difference in how they perceive the value of your services. Confidence in your pricing also means you’re less likely to waver or offer unnecessary discounts, helping you maintain a consistent and professional image.
Regular Price Reviews
Review your pricing annually, at a minimum. Your business evolves, and so should your prices. Adjustments may be necessary to align with your current goals and market conditions. Regularly reviewing your prices ensures they remain competitive and reflective of the value you provide. It also allows you to make adjustments based on changes in your business costs, market trends, and your own financial goals. This proactive approach helps you stay ahead of the curve and ensures your pricing strategy remains effective.
Money as an Energetic Exchange
Money should feel like an equal exchange of energy between you and your clients. You should feel good about your prices and confident in the value you provide. When pricing feels right, it creates a sense of balance and fairness in your transactions. This energetic exchange is about more than just money; it’s about valuing your work and ensuring your clients feel they’ve received good value for their investment. This balance fosters positive relationships and helps build a sustainable, thriving business.
TL;DR
Alright, busy bee! Here’s the gist:
Consider all your time: Include prep, admin, and follow-up in your pricing.
Factor in tech costs: Your overhead isn't just a number; it's your foundation.
Diversify: Low-ticket items are sweet, but a mix of offerings will help you grow.
Balance personal needs: Your prices should support your life, not just your business.
Know your worth: Charge what you deserve because you’re worth it!
Ditch the scarcity mindset: Balance your pricing to reflect abundance.
Be patient: Building an audience (and trust) takes time.
Confidence is key: Stand by your prices; it shows.
Review annually: Your prices should evolve with your business.
Energy exchange: Make sure money feels good for both parties.
Reflective Questions
Have you accounted for all the time you invest in your services?
Do your prices reflect your actual business costs?
How can you diversify your offerings to support growth?
Are your prices meeting both your personal and business financial needs?
Do you believe in the value of what you’re offering?
Are you pricing based on fear or value?
How patient are you with your audience-building efforts?
Do you feel confident and good about your current pricing?
When was the last time you reviewed your prices?
Does the financial exchange with your clients feel balanced?
Ready to refine your pricing strategy and elevate your business? Book a 1:1 Business Consulting session with Kay Sibson today and start your journey toward sustainable growth!
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Kay Sibson is a strategic business consultant known for her creative and holistic approaches to small business consulting, helping entrepreneurs scale their businesses sustainably. With a diverse background that includes technical theater and extensive experience in operations strategy, marketing strategy, and team management, Kay brings a dynamic and innovative approach to her consulting practices. Her expertise in business growth strategy and strategic business consulting and planning makes her a trusted advisor in the business community, adept at fostering scalable and intuitive solutions.
Remember: this post is for informational purposes only and may not be the best fit for you and your personal situation. It shall not be construed as legal, financial, or medical advice. The information and education provided here is not intended or implied to supplement or replace professional advice of your own attorney, accountant, physician, or financial advisor. Always check with your own physician, attorney, financial advisor, accountant, or other business or medical professional before trying or implementing any information read here.
