Bad pricing can destroy your business’ value — here’s how to fix it
Bad pricing is likely to destroy a business’s value, revenue and profits. But the cycle of bad pricing is a difficult one to get out of — especially if you’ve been underpricing or slashing your prices for a long time.
Underpricing and discounting occur from a myriad of factors — from not knowing your target audience to suffering that pinch of feast or famine so typical of our industry. You could also be living in scarcity because you’re afraid there’s not enough business to go around. Or maybe you’re afraid the competition is too great, too saturated.
This fear of charging adequate pricing, this fear of talking about money, this fear of confidently sending your proposal….all comes down to one key factor: not knowing your worth.
When you don’t know your own worth, you can’t expect your clients to see it. And what’s more — you can’t expect them to pay it.
Thankfully, there are TWO key solutions when it comes to charging your worth. Let’s dive into them.
The first is knowing your superpower. You have to get extremely clear on what you offer, what sets you apart, what is your magic sauce. Even if a competitor mimics it, it’s never going to be as good as what YOU offer. That’s your superpower.
The second thing you need to get clear on is your financial goals. As business owners in an industry that thrives on creativity, we often don’t look that closely at our money until tax time rolls around. (Guilty — I’ve been there too.) When was the last time that you had a crystal clear vision of your financial goals? If you were chatting with a friend right now, could you confidently answer these questions?
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What is your financial goal for the second quarter of the year?
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What is your financial goal for 2021?
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What is your financial goal for 2025?
If you’re like many creative event and wedding entrepreneurs — this task is a lot easier said than done.
The good news is, when you get crystal clear on these two things in your business, you:
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Deliver both healthy profit margins and robust revenue growth
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Put a stop to trading profit margins for revenues
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Fully engage the value your business offers clients
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Kick the dreaded discounting habit.
With my proven plan, any event and wedding business owner is guaranteed to increase sales without sacrificing their craft.
If you need help gaining clarity on what your superpower is, as well as creating a sound financial plan, all so you can uncover an additional five figures per month, I’m here to help. I’ve set aside time this week so we can hop on a complimentary 45-minute call to dive into your business.
