A Lesson In Charging Your Worth
We hear it all the time - "charge your worth", and I've even written a past blog post on it HERE.
Yet, I find many entrepreneurs still struggle with pricing their services and I think it comes down to a certain fear deep within that doesn't allow us to believe what we offer is better than what someone else offers, and that we have to stick within certain guidelines when it comes to pricing. So, in an effort to help, I'd like to share an experience from this past weekend.
We bought our house brand new in 2014. At that time, we were the first home with a carriage house in the small city we live in. Because of this, our carriage house was super easy to rent out because it was so unique. Over the years, at least 18 homes have been built in our neighbourhood with the exact same carriage houses.
Now that our tenants have a newborn, they're ready to move on to a bigger space. So, when my husband and I were discussing the new rental price for the unit, I suggested we do something no one else in our neighbourhood had the confidence to do - we raised the rent by $200 on a rental unit that was already $300 more to rent than the other units in the neighbourhood. Meaning, while everyone else was charging $600 for their carriage homes, we had already been renting ours out for $900, with the new rental price being $1,100.00.
While the gossip began in the neighbourhood, I told my husband, "I bet we'll have more people apply than we have time to show the place, and I bet we'll find our renters after one day of showing". And we did.
After crafting an ad on Craigslist not just focusing on the FEATURES, but the BENEFITS and why our carriage house is the best in the neighbourhood, we easily filled the 6 spots we had available for Saturday's viewing.
One of the applicants was a single male and he said "Your ad didn't lie. You're charging a lot more than the other carriage houses are going for, but you did a great job explaining why."
When I crafted our ad, I knew exactly who my target market was (young couples with high paying jobs and a dog; no children). I knew exactly what their pain point was (hard to find good rentals that allow dogs). And, I knew that they were willing to pay a certain amount to ensure their desires were met.
If you're thinking "that's great and all, but how does this apply to pricing my coaching services?", let me break it down.
- Even though I pretty much was offering the exact same thing as 18 other people in my neighbourhood, I didn't pay attention to what they were doing - I followed my own voice. While everyone else was offering a mediocre experience for their tenants, I looked at what made my unit stand out from the rest, and I used that to attract a certain type of tenant.
When it comes to your coaching business, I encourage you to look at what you can do, or what experiences you can create, that will help you shine from your competitors. I also encourage you to stop obsessing about what they are doing in their business and focus on YOUR business and what you desire to do. This is your own journey, not a copycat of theirs.
- I knew exactly who my target market was, what their specific pain point was, and what they were willing to pay for a solution. Honestly, I probably could have easily gotten $1,250 for our carriage house. The applicants who came by were in love with the place and over the moon that dogs of all breeds and sizes were welcomed.
When it comes to your coaching business, your ideal clients will literally flock to you and seek you out if you're open and confident about the type of clientele you serve, and how you can best serve them. Stop trying to please everyone because your message becomes watered down and boring - it's when you stand up for a particular niche that you begin to develop true connections with potential clients.
- While the features of the carriage house were important, I made the focus be on the BENEFITS (i.e. the backyard experience). Everyone else probably offered the same stainless steal appliances and en suite laundry, but I guarantee you no one else provided their tenants with a backyard or parking for two cars (most didn't even have parking for one!)
When it comes to the sales page for your coaching business, don't concern yourself with the features of your program (i.e. number of sessions, email support, etc.). Focus on the BENEFITS of the program. What are the anticipated end results? What are the benefits of each feature?
In short, when you're 100% confident in your offerings and the value they provide to your clients, you never have to justify the price - your program will speak for itself.
Take into account your time, energy, credentials, and the experience that you create for your clients, then price it out at what you believe all that to be worth. At the end of the day, you should feel excited about your pricing and feel in alignment with your decision.