The first thing to know is that this is not just about what the market will bear. This is not about what people will pay. (That's only a very small part of the equation.)
If you look to these conditions, you'll be limited by your own experience. You will make decisions about pricing based on your own experience…. what you have paid, what you would pay, what the people you know would pay, what your past clients or customers have paid, and what the competition is charging.
Most people walk around with blinders on–only seeing what they've already seen.
This limits you and your earning potential tremendously. There's a market at every price point.
The answer is two-fold.
First, there's a simple math calculation you have to do and it goes like this…
How much do you want to make annually? Your answer = X
How much are you charging now or considering charging? Your answer = Y
Then the calculation looks like X divided by Y = Number of products or clients.
So let's say…
X = $200,000 annually
Y= $3,000 per client or productThen $200,000 / $3,000 = 67 products or clients a year
67/12 months = 6 new clients or products a month
Is this doable? Sustainable? Does it feel good? Can you handle it? Will it be overwhelming?Does the amount you're charging or considering charging feel exciting?
If it doesn't feel sustainable, good, doable, exciting… that means some part of the equation needs to change. You either need to raise your prices or lower your financial goal.
Don't make the mistake of lowering your financial goal. That's soul crushing.
Instead, raise your prices.
And that's when the noise starts…
- Will people pay that?
- What will people say?
- Is it worth it?
- Am I worth it?
- Do I really need to earn that much money?
- Will I have no clients or make no sales?
- Will I have no money at all?
- Will I let my family down, not be able to pay my bills, starve, and die?
This is your money story. This is your worth story. This is your security story.
The second part of this answer is that you're going to have to move through your own resistance.
“Getting your pricing right” is what happens after you make the sale at your new price point, not before.
To get there, you've got to manage your mindset and deal with your worth, security, and money issues. This is where the rubber meets the road.
And the only way forward is through.