Pricing your offers can see overwhelming at first glance. This is especially true if you just started your business. There’s so much time and energy put into learning your craft; how on earth would you start to put a monetary value on that?!
It’s a good thing you came across this post! When starting to price your offers the first piece of information you want to look at is your ideal client and competitors in your field. So you need to do pricing market research.
Pricing market research is the stepping stone to how to position your offers in the online world. Luckily, it’s a very simple process as well, broken down into two components.
Part 1 is a competitor pricing analysis. This is where you’ll want to look at other comparable business owners in your specific niche and see where they price themselves. The trick here is to make sure they are comparable business owners in the same niche. For example, if you have a lot of experience in your field, doing competitor analysis to someone who is brand new would not be comparable. But comparing your prices to the prices of someone who has had some skin in the game will give you a more fair assessment.
To complete part 1, all you have to do is check out the websites or socials. Some businesses do keep prices hidden, but there should be a hint to the number they are charging. If there’s nothing just move onto the next competitor.
As a bonus, networking and making friends in the same niche can reveal a lot of information to you. As you make professional friends, asking them what they are charging and how they arrived at that number can give you a lot of insight.
Part 2 is ideal client analysis. You want to be asking direct questions to your ideal clients to know what their budget is, and where your service fits into that budget. By doing so you figure out two things; how much value they perceive your business giving and what they can comfortably afford. Your pricing will lie between their budget and the minimum and maximum of what they can afford. This way you avoid being the cheapest option, and you also avoid being the too expensive option.
How you complete an ideal client analysis will depend on what your niche is as well. If you are a business coach that helps someone make more money, it’s more common to ask what about financial details. If you are a creative for non-businesses it wouldn’t be considered as decent to ask someone how they make. In this case, being able to estimate demographics is helpful. Doing research on if they are likely to have debt, if they have kids that fit into their budget, and what their career typically pays for their area are all great estimations.
Looking for the next step in the journey of pricing your offers? Check out my free video training on underpricing. You’ll learn what underpricing is, and how to avoid it so you can grow your business with a peaceful mindset. You can access that here.
Like this blog post? Check out my other blog posts here on growing your online business.