Are you ready to start talking price with your consumers? What about packaging? These elements make the first impression on your customers, especially if you’re selling online or in a retail outlet without guaranteed customer interaction. Therefore, how you price and package your offer could be the only way your customer determines whether or not you can deliver on your value promises.
I see many small businesses create an offer of genuine value, only to position themselves as a low-cost provider due to these elements. They use a cheap graphic design, rushed copywriting, or worse — actually, underprice themselves — and end up working their finger to the bone for an undervalued service.
Communicating value is about more than choosing the right price. It’s about justifying that price with your money mindset, your presentation, and the confidence you instill in your end-to-end customer experience. If entrepreneurs are having trouble selling at their given price point, I typically ask these questions to root out the core issue:
What’s your money mindset?
Money mindset is about more than a budgeting plan and pricing strategies. It’s about how you view your finances mentally and emotionally. For example, if you have self-limiting beliefs about your ability as an entrepreneur or about your team, you’re likely to carry these beliefs into the way you present and price your services.
You must first develop a money mindset that accurately assesses your abilities and is opportunity-focused instead of scarcity-minded to position yourself correctly.
How are you supporting that money mindset?
Changing your money mindset doesn’t happen overnight. You need support — both from your own mental practices and from your team — in order to actually act upon those beliefs. I typically recommend entrepreneurs use daily mantras to support their money mindset, as well as motivational resources to boost team morale.
Some of my favorite money mindset books are The Legacy Journey by Dave Ramsey, Thou Shall Prosper and Business Secrets from the Bible by Rabi Daniel Lapin, and 100 Ways to Create Wealth by Sam Beckford & Steve Chandler.
Do your beliefs about your business align with your actions?
Developing the mindset is half the battle. Once you can confidently sell your offer with a realistic understanding of its value, it’s time to put together a package and price that reflect that belief. What you do says a lot more about your business than what you say. If you’re acting from a place of confidence, you’re more likely to achieve the goals you set forth, regardless of what they are.
Do your offer and pricing support your financial goals?
Setting goals in a startup is always a challenge. You often don’t know how high to aim or what to do when your goals aren’t met. But, by choosing a price and packaging that reflects your goals (whether they are revenue-based, lead-based, or simple mission-oriented), you are more likely to achieve them day by day.
You have several options when it comes to setting your price. You can use a cost, competition, or value-oriented price structure, and whichever you choose will determine subsequent strategies for your primary and secondary markets. I recommend using a holistic approach — utilizing all of these factors to select a price that hits the sweet spot — however, the most essential factor is backing up that decision with your attitude, pricing, and marketing plan.
Pricing and packaging are never easy for small businesses. While I can’t make these decisions simpler, I can help guide you toward a more precise understanding of how to make these decisions using your intuition.