Updated: Feb 5, 2021
When starting a service-based business, pricing can be one of the greatest challenges.
Often, new business owners think they should start with discounted or low prices so they can “get clients faster” or “gain more experience” or “build a base of clients”. All while believing they will raise prices in the near future.
In reality, these are just excuses that keep us from charging what we should be charging.
If you have started a business and are working on gaining the courage to raise your prices, here are four reasons you should start charging full price:
1. Your Energy
If you provide all your services at a discount, it will take a toll on how you show up. How can you tell your brain to give 100% when you are only asking to be paid 50%?
You will be your best self and do your best work when you know you are charging what you and your business need to thrive. This leads to the second reason:
2. Your Business
This is a business!
Instead of thinking about how much YOU are being paid per hour (which is how an employee thinks), you need to think about what the business needs to grow and thrive. This includes things like insurance, technology, training, lease payments, and staff.
When you can take yourself out of the direct equation, pricing becomes a business decision, not a personal one. Thinking like a business owner can help remove some of the emotions of the process and help us make more strategic decisions.
3. Your Network
As you build your network, you will be sharing your services (and your prices) with those around you. Think of your network as advocates who will carry your message to others. What do you want them to say? How hard will it be to change the message later?
You want the best possible information out there in the community from the start!
4. Your Clients
While it might seem like any client is better than no client, the truth is, you don’t just want “clients”. You want ideal clients. Your ideal client will (happily) pay your ideal prices. Why? You provide a service that alleviates their pain point. They see your value and will be happy to have found you. It's a win-win.
The reality is this:
When you build a business on low or discounted prices,
you will have to relearn how to build a business at your ideal prices.
For the sake of your energy, your business, your network, and your clients, build your ideal business from the beginning!
If this has helped give you the confidence to charge full price in your small business, number 9 of this blog, 11 Tips For Local, Service-Based Businesses has additional tips on getting out of the “discount” cycle.
You got this!
Starting a product-based business? Here is a great article, written by Matthew Toren, giving 6 Good Reasons to Ditch Offering Discounts from Entrepreneur magazine.
Hi, I'm Amy, a small business coach, and owner of Amy Lynne Coaching. I love to help entrepreneurs, solos, freelancers and small business owners reach their dreams. While located in the beautiful Twin Cities of Minneapolis and St Paul, MN I work with people all over the world thanks to the magic of the internet.
Interested in learning more? Schedule a 30-minute call here!