I want to share some valuable wisdom that I only understood after YEARS of working in my own business. (This is not something people talk about very commonly, but it’s really profound if you’re ready to hear it.) It has to do with the pricing you choose for your services, products, events and so forth. We all want to make the most income for the time we spend. We all want to help the largest amount of people. But those two “wants” compete against each other. Having a pricing strategy is the key!
What I mean is, if I charge $1 for a product, I can help a lot more people but I won’t maximize my income potential. If I charge $100,000 for that product, I won’t help very many people but I will maximize my income potential.
I’ve been extremely careful about our pricing strategy at NGNG because I want to ride the very thin line where we can help more people while still making enough income to keep everyone happy and feeling valuable.
And, by the way, I get a LOT of grief from coaches and colleagues when they hear our pricing and margins compared to the vast amount of experience and talent we offer. Every single one tells me that we are charging way too little. I even have clients tell me that! BUT, there’s a reason WHY I do everything I do.
Take for example, business coaching. I charge $450/hr for a 1-hour coaching call. Now, that’s not nothing for sure. That’s a lot of money! But what are my colleagues charging who have comparable experience? More than $1,500/hr.
I CHOOSE to charge less because I want to help more people and most importantly … the “type” of client changes the more you charge. And herein lies the lesson.
If I charge $1,500 for 1 hour, I narrow my focus only to people who can afford that rate, which automatically discards most of the potential clients in the world. Further, this level of client includes (more often than not) people who have a higher level of success, tend to be less patient, more demanding, less amiable and open and are very results-driven.
IF at this point you realize that you would prefer to work with fewer people in general, that you only want to work with high-achievers and you plan to have less personal or professional boundaries to serve their needs, then PERFECT! You need to increase your rates!
IF you realize that you want the opposite, it’s likely a good opportunity to keep your rates a little lower. Now, if you look at my rates, we’re not charging $50/hr for coaching. The point is, charge what you feel is fair for the service you offer, based on what the market can afford, based on WHO you want to work with the most.
Adjust your rates based on WHO you want to work with the most.
That is what people aren’t talking about! Most say charge as much as you think you can get away with. But if you do that your pricing may be hurting you because you’ll end up working with people you don’t like. There won’t be ease and flow. It will feel hard to sell. You’ll feel uncomfortable. You’ll end up resenting the work you do.
I charge the rates I do because I LOVE the people it attracts, and I get to work in total flow all the time. Business feels easy to me because I know who I want to work with.
If you don’t know the type of person you want to work with, you just need more experience. So get out there and market your buns off to learn what you enjoy doing and what you don’t.
I hope you see the value in this wisdom. I wasn’t ready to hear it myself in the first year or two of business – but now, I think it’s one of the most valuable tools I’ve ever learned.
What do you think after reading this? Comment below and let me know your thoughts!
Amber – you are so amazing! You are one person who I LOVE to watch for your “guts” which is something I need to develop. I am much too careful but now I see that I needed some time to develop my brand and my confidence. This is my year to engage. Thanks for your inspiration, for always responding, for you non-stop giving . . . and all you do. Sending a big thank you!”
– Elaine Pauly
Hi Amber! Great article— you certainly articulated an issue most of us wrestle with!”
– Nancy D. Solomon
Amber, this was a great message. Thank you for that as I’m working on my pricing right now. Yes! Price based on “Who” you want to work with – amazing concept (yet so simple right)? You and your team are truly an amazing benefit to my business and I just wanted to take a moment to let you know that!”
– Pam McAlexander
Hi Amber, So true! All of that. The time I’ve spent with you vs value I’ve received in that time is waayyyy more than than an 8K coaching program gave me by [a well-know marketer and coach]. I’ve adjusted my website to more closely reflect me, my ideal clients, and by the way the website helped me attract recently my ideal associate (she read my website and couldn’t wait to join me). AND I’m loving your helpful attitude and humble demeanor.
I too have increased my fees in the past only to find I’m slave to folks who think I should be available at every moment to answer their questions even on the weekend. No. Thank you. I enjoy working with people just like me. So I’ve kept my fees so that it attracts my ideal (not ultra wealty) folks. AND they refer folks just like them…pay their bill…..do the work….YES! Give me a practice full of those people, please, and thank you! Satisfaction and a fair fee is more important than wealth.
I think you’re absolutely right on with your posting about fees. Thank you for being you, Amber. You’re such a gift to the world. Your staff is wonderful as well.”
– Karen Pierce