How To Tell If Your Prices Are Way Too Low
Nothing was too low for me when I first started writing for a living.
free.99
$20
Service swaps
You name it, I've done it. Mostly to win testimonials and bulk up my portfolio. I was just so gosh darn excited at the opportunity to DO IT FOR A LIVING.
Truth be told --it gets old quick.
Once you've garnered the 5-star ratings and an honorable portfolio...where's the thrill? The eagerness to get going? The je-nais-compensation?
Maslow Law
It disappears and the excitement needs to be replaced or restored. Also, Maslow Law kicks in: basic needs (food, water, security).
Then you question: "How do I produce a full-time income doing my thing?"
Answer: By starting with how you price your service/products. It also determines the quality of your work.
Here's How to Tell If You're Pricing Way Too Low:
1) How it Feels After Someone Purchases
Dead giveaway.
You don't ever want to experience this pain but for the hard headed ones like me. Not until someone purchases the thing you lovingly made, dirt cheap, will it hit you. Once the 7-day payment window clears --you'll know.
2) Gut Check
Do the research of other professionals who do the same thing as you.
Price the thing.
Say the price out loud.
Repeat.
How does it feel? Do you cringe? Do you get excited? Are you doubting everything?
Your gut never lies.
3) At Least 1 Person Told You, "It's low"
DISCLAIMER: Hopping into Facebook groups to get feedback is something I advise against, for the record. You really don't know where another person is at in their business and mindset around money to have them weigh in so heavy about your own.
- Pay attention to customer feedback. Do a pilot run with a few customers aka a beta test. What was their initial response?
- Ask for honest feedback from a trusted advisor. Take their experience and expertise into consideration. Are they where you want to be? Have you seen their prices increase over time?
- An industry peer is the most valuable as they're in the trenches with you. Just also be cautious of their mindset around money. It may be even lower than yours or way above your comfort zone. If still unsure, refer back to #2.
4) It Can't Stay On The Shelves
You would think this is a great sign!
You made something people really want. This is a phenomenal feat but you spend more time doing the thing --than you're compensated for. People know when they're getting extreme value, they're buying it up before you return to your senses.
5) You Don't Want To Do It
I mean, this one is self-explanatory.
If you're feeling overworked for peanuts. If it makes you sick to create an invoice. If you procrastinate and complain your way through it. The price you've put on yourself and your product has been placed in the bargain bin.
Funny enough, we can see it for others when they're undercharging but it's a battle for ourselves.
Let's start to shift that thinking.