Charging Your Value: 3 Keys to Profitable Pricing

[0:06] And welcome back to your fun and profitable online business. I’m Wendy Muzzy, a money coach and business strategist, and I’m here to cheer you on as you create an online business that feels as good as it looks. That’s why I’m known as Confetti Girl. If you’re ready for some fresh ideas, real talk, and a little sprinkle of confetti along the way, you’re in the right place. Today, we’re tackling a big one, charging your value. Pricing is one of those topics that can bring up all kinds of self-doubt, fear, and even guilt. But here’s the truth. The price you charge directly impacts your business, it directly impacts your confidence, and it directly impacts your ability to serve at the highest level. Plus, we want to be profitable. Let’s do this. Let’s talk about pricing with confidence and stop undercharging for the incredible work you do.

Why your pricing strategy should reflect transformation rather than just time spent

[0:56] We’re going to start off with the three keys to charging your value. Up first, pricing should reflect the transformation, not just your time. You know, this is one of the biggest mistakes I often see as people think about time in, and time out. And whenever we come from the W-2 world, that’s often the case. We give them an hour of work, they give us an hour of pay. And that sounds really, really nice unless you’re on salary, but that’s a whole other conversation. That’s really, really nice in that context. But here, as we own our businesses, we’re really charging people for what we’re bringing to the table.

[1:29] And if we only think about dollar in, dollar out, that limits how much we can make. That really hurts our earning potential. So if we switch this a little and think about what the transformation I’m bringing to them.

[1:44] Let’s say you create a system for your clients that saves them hours every week. That’s valuable. It may have only taken you two hours to teach them the skill, but you’re saving them over the life of their business. That’s the transformation. you’re charging for that transformation. And we can start to focus our pricing accordingly whenever we do that. If you’re just starting out, sometimes I suggest figuring out your ideal hourly rate. This is really hard whenever we’re just starting out. I’ve been there and like, oh gosh, I think I’m just going to charge a really low rate for what I’m doing. So I do have a pricing calculator to help you figure out what your ideal hourly rate is. This is like a jumping-off spot. You can plug in what you’re hoping to make, how many hours you’re hoping to do, and then how long it’s going to take for whatever you’re offering. And this will give you a package price or a collective price. I don’t recommend using this throughout the life of your business, but I do recommend using this if you’re just starting out and trying to figure out your ideal hourly rate. You can find that at wendymuzzy.com/calculator. It’s free, but it’s used to help you determine this. And there are also some questions if you should increase your rates or lower your rates based on that.

How to develop genuine pricing confidence

[2:56] All right, number two, confidence in pricing starts with you. I’m going to give you a little bit of tough love. I don’t do this often, but I’m going to do it here. If you’re doubting your prices, your potential clients will too. I’m so sorry. I wish it was easy. I wish I could just say, just tell them what your prices are and everything will be fine. No, you’ve got to be really solid whenever you tell your prices out loud to somebody. This confidence comes from being crystal clear on the value you bring. Maybe it’s an experience you have, or maybe it’s the results you’ve created, but you have to be really, really clear on the value you bring to the table. I often suggest writing down all of the results you’ve provided. This could be big or small, but write them all down so you can see them in black and white and remind yourself of the impact you’re making. It’ll naturally flow to confidence in your pricing whenever you say it, but make sure you can really understand the value you’re bringing to the table and feel really confident as you say them.

[3:52] Number three, the right people will pay, the wrong people hesitate. Here, we’re going to talk a little bit about fear and the role it plays in all of this. Specifically, the fear that people won’t pay, or the fear that someone will say, oh, that’s too expensive. When I first started out, I was worried that pricing was going to be hard. I was talking to people about their money and I was worried that people wouldn’t pay what I was asking. and I had someone tell me, that those aren’t your ideal clients. And that hit me like a ton of bricks. If people don’t pay, they’re just not my ideal client. My ideal client is going to pay to fix their problem. They’re going to know that I’m the solution because I’m going to continually tell them that I’m the solution through my presence and they’re going to pay because of what I bring to the table. So really pricing is a filter. The right people, the ones who truly want to work with you will say, yes, that’s exactly what I need. And the ones who don’t, they’re simply not your right people. And that’s okay. If you keep hearing pricing objections, it’s not a sign to lower your prices. Sometimes it’s a sign that you need to clarify the value you’re bringing or reposition your offer. Remember, it’s your job to convey the value of what you bring to the table and these calls and these interactions and everything in between.

Practical steps for conducting a business pricing audit

[5:12] All right, here’s your action step for today, do a quick pricing audit. Write down your core offers and their prices. You have one, great. Write down that, write down the price. You have 20, great. Write down them, and write down the prices. Next to each one, list the transformation it provides, maybe what problem it solves, and the results that it creates. Then ask yourself, is this price aligned with the value? If it feels off, adjust accordingly. And if you’re feeling unsure about it, test it out. if you think, hey, this needs to be a little bit higher. Now, I will always say it’s easier to raise our rates than lower our rates, so raise our rates. If it feels uncertain, go up 10%. Try it on your next few consults, just a little bit higher.

[5:56] Make sure you work through any doubt that you may be holding on to because when we see our prices with uncertainty, potential clients pick up on it. I have a $9 training on this and how to price with confidence. You can find it at wendymuzzy.com/everything, or you can also find it in the show notes. That’s wendymuzzy.com/5 for this episode.

[6:18] Look, charging your value isn’t about numbers. It truly is about owning your expertise, recognizing the results you bring, and showing up with confidence. You are worth it. Your work is worth it. And the right clients, know it too. If you love this episode, share it with a friend. And don’t forget to subscribe and leave a review. It helps me reach more entrepreneurs like you. Until next time, be sure to charge your value, friend.