One major challenge for entrepreneurs is charging what they are worth. They frequently undercharge because the ‘product’ they are selling is themselves. “The issue with entrepreneurs is that their self-image is tied in with their perception of their price,” says Sales Ethos founder, Ben Lai. “When I started my business, I had the same problem and was only charging 50% of market rates.”
Charging the right prices is just as important as increasing sales. Below Ben outlines 3 tips to help you start charging what you are worth.
Tip #1: Review your mindset around money and business
Thanks to social convention, many of us are brought up with negative views about money. I’m sure we’ve all heard the phrase, ‘money is the root of all evil’, at some point in our lives. Money itself isn’t evil. It helps to understand the original wisdom ‘the LOVE of money is the root of all kinds of evil’.
Money is a tool we use to reward others for their service to us and vice versa. At the end of the day we all need money to live, and businesses are responsible for pumping money through our economy. Without them, the entire nation would plunge into a recession and widespread poverty.
Yes, there are corrupt businesses, but your business does not have to be one of them. Unethical businesses will get what’s coming to them eventually. When you create an ethical sales strategy and business model, when you earn money, your client is actually saying ‘thank you’ for being valuable to them!
Tip #2: Understand the market
The single-most important factor for pricing is what the market is willing to pay for the service.
The simplest way you can deduce this is to see what your competitors are charging.
Find out what your competitors are charging, and be very clear about how you are different to them. When you have strong differentiation (in a way that is beneficial to your potential clients) to your competitors, you can charge a lot more.
Tip #3: Become excellent at communicating your value
Something we struggle with as humans, particularly introverts, is communicating our values. You can still be humble whilst communicating to your prospects you are the best at what you do.
Pay special attention to your sales presentations – the better you communicate your value to clients, the more likely they will buy from you. Make sure your value is outlined by both tangible, and intangible factors.
Tangible factors usually mean return on investment or receipt of physical products. Even tangible factors need to be “translated” into stories for your clients. They need to be able to picture in their mind what it’s like working with you, and how it will benefit them.
Many people would be surprised to learn that charging what they are truly worth can actually bring about an increase in sales. Use Ben’s above tips to ensure you’re selling your product or service for the price you are actually worth. To learn more from Ben, or to work with him and the Sales Ethos team, visit their YouTube Channel or book a complimentary consultation here.
