Updated: Feb 25, 2019
Charging the Right Price, Unapologetically
Like many of us, as the new year approached, you faced the upcoming year with an intention. You told yourself, “This is the year I start my business.” You may have been preparing for this for quite some time. You have your ideas, your business name, your business cards, logo and maybe even a few social media pages. However, like many of us, you may have found yourself struggling with your pricing. Below are just a few tips to help push you through this minor obstacle.
How much do you charge?
Let’s be honest, it’s tough coming up with a pricing list. Unsure of how much to charge, you’re torn between not wanting to overcharge, due to possibly scaring away customers, but, on the other hand, you want to make sure you are charging enough to be sure you don’t end up providing your services essentially for free
What's a good price to charge?
For those of you who may not know, this is the age of small businesses. Millennials, in particular, as well as others, are quickly getting away from the thought of working for another. Less people want to work until they retire, just to continue struggling financially, once retired. In today’s current society, many are realizing they would like to work for themselves, and profit off their crafts. This means we are in sort of a “small business season.” Everyone is starting one and just about everybody wants to support one. Gone are the times that people run to major corporations for products, when in today’s age we have a friend whose friend sells the same thing through his or her small local business. Today is all about supporting and uplifting our peers. Therefore, being asked how much you charge will become a common question, when starting a business, especially for people looking to support you.
When beginning your business, here are some things to think about:
Know your market – Find out how much your customers are willing to pay and how much your competitors charge.
Know your expenses – Write down how much it costs for you to invest in your business.
Know your customers – Who is inquiring and who is actually buying? Does your target audience even use your product/service?
Know your competitors - Who is doing what you do in your area or where you wish to sell? How much are they charging? What is different about your product/service that may be a selling point?
Know your timing - How much time does it take to create your product/service? Remember “time is money.” Never forget to charge for your time/services.
Start with these five points to help you put together a price. The consumer does not need details of where the money is actually going. Be fair to your clientele, but, also, be fair to yourself. If providing a service you can charge a flat rate or hourly, the choice is yours.
"Small business isn’t for the faint of heart. It’s for the brave, the patient and the persistent. It’s for the over-comer."
Lastly, don’t be afraid to lose customers because of your prices, as long as they are within reason of course. There will be people who, like I said, want to support, and those who simply do not. Some people will expect your prices to be cheap since you’re a smaller business “competing with bigger companies,” who can afford to sell products for cheap. Don’t let people with that mindset affect your worth. Keep in mind, you have a craft, and you deserve to be paid for your craft. As long as you keep the customers that don’t mind paying the right price for your quality product/service, you’re already winning. So charge what you’re worth and don’t apologize for it!
Written by: Sharika S. Lloyd