PODCAST: Common pricing pitfalls we make when pricing our services

Many new entrepreneurs struggle with how to price our services for photography or any other creative business.

The common pricing pitfalls we make in the first few years of business when pricing our services and products is so common that it’s nearly universal and set the tone for our future financial success.

Maybe you’ve thought these things?

  • I’m not sure who qualifies for my friends and family discounts.
  • The pricing I know I need to charge scares me -or- my husband/wife/father/friend says nobody will pay it.
  • I picked numbers that sounded good and felt good to me, but either nobody is buying or I know I’m not making any money.
  • I’m not sure exactly what I should be charging for what I’m offering.
  • or maybe you get tons of leads and inquiries, but you aren’t closing the sale – they aren’t booking.

Which one of these sounds like you?

Check out more on this awesome podcast:

How to NOT price your services

The problem stems from us switching to building a business on the side and then comparing our prices to what we make at our old job or how much money we have to spend due to our current income.

What you have to realize here is that it is not apples to apples. 

Pricing your own products and services for your small business is more like a cheeseburger vs. an apple.

The Right way to price your work

What matters most is that you remember that you only get to pocket about 30-40% of what you bring in in sales.

{I’ll wait while you digest that}

Most entrepreneurs aren’t making enough money because we aren’t thinking through ALL of the business expenses, we don’t budget for business expenses (hello shiny objects!), and we assign our own money beliefs onto the prices we charge.

Here’s my #1 hot tip:

–>> You don’t have to be able to afford your own work.

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Common Pricing Pitfalls

The big problem is that we keep our ego attached to the prices we charge instead of using math and this one question:

“Am I running a business or am I running a hobby?”

We compare ourselves to our competitors, who may have entirely different financial needs than we do (and may not actually be profitable!).

We have a lot of fear surrounding our full price because we worry that people won’t hire us or pay it (fear of rejection).

And my favorite is that we assume that other people value the same things as we do. Guess what? They don’t. Just because you wouldn’t pay it, doesn’t mean that your client won’t.

So, do your math of what you need to really be running a thriving and sustainable business and then go out and find people who will pay it. They are out there.

common pricing pitfalls

Are you doing these common pitfalls around pricing your services and products? Have you learned to get past the money mindset problems that keep you broke.

So how do you feel when you send out an invoice for a lot of money? Why do you think it’s a lot of money? Do you worry they think you are greedy? Do you ever feel like you weren’t asking enough? 

More importantly, did they pay the invoice with no trouble? 

Share your stories below…

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