I have to admit that pricing is one of the toughest issues we face in this industry. Here’s why: Price too low and you devalue what you offer, you’ll attract low-quality clients, and you’ll face burnout – very quickly I might add.
Some of your potential best clients might not even take a second look at what you are offering because the low price denotes low quality. Instantly, the phrase “you get what you pay for” comes to mind.
If you price too high, you run the risk of pricing yourself out of the market you’re serving, always hearing “you’re way higher than the other VAs I’ve contacted” and forever having to justify your rates, and there goes your confidence.
When I started out, my tendency was to undervalue and underprice what I was offering. It wasn’t until I started networking with others who asked a fair price for the value they produced that I realized the mistake I had been making. I consistently undervalued what I offered…and honestly I still make this mistake sometimes with my programs and products.
But here’s the thing, it’s usually not about the price as much as the “perception.” I hate to be the one to point this out, but if you are offering the same services and going after the same market as a $3 VA, then you really can’t complain that you aren’t making enough money.
In short, if you’re delivering Walmart services, you can’t expect to receive Saks prices.
(Not to knock Walmart, but I’m trying to make an analogy here.)
I found that I always have to go back and re-program my mind to think about the real value, instead of just cheapest price.
What clients really want is for you to provide them with the benefits they’re seeking. Sure, price factors in, but a service that can’t fulfill their desires isn’t worth it no matter how low the price.
Also, think about which clients you most want to attract. For example, I would never price my Infusionsoft implementation packages “on the cheap.” My packages start at $2,250 for 2 months of consulting. That’s not anywhere near the highest. In fact, it’s the lowest I know of for someone with my experience and client base. It’s not cheap though. I know the value of what I offer…and what it can do for someone’s business. And at that price, I had better deliver!
My service offerings are priced to attract my ideal client – online business owners who want to increase their profits, streamline their operations, and bring their team up to speed.
I’m not trying to attract brand new beginners as I don’t think they’ll get the value or results that my “ideal” clients are looking for with me.
What it comes down to … Don’t compete on price – compete on value.
Where are you having trouble when it comes to pricing or working with your ideal client? Tell me in the comments below.