Hey there, fellow aspiring entrepreneurs! Suzy Wraines here, your host on "Starting a Business Simplified." Today, I want to dive deeper into the realm of pricing. As we know, determining the right price for your services can be a daunting task, especially when you're just starting out. In a previous episode,
I shared some basics on how to set your pricing. Now, let's explore why it's crucial to consider the type of client you will be serving when determining your prices.
Let's start by asking ourselves some specific questions: Who are you selling to? And how do they perceive the value?
Understanding your target audience
Understanding your target audience is vital in aligning your prices with their needs and expectations. For example, in my business, I work with new entrepreneurs who are just embarking on their business journey. They often have smaller budgets and evaluate the cost-effectiveness of every expense. By putting myself in their shoes, I can price my services in a way that meets their criteria.
So what exactly are their needs? They require information, guidance, accountability, and structure. As a service provider, I fulfill these needs through my offerings. Additionally, the services I provide are fully tax deductible, which is a beneficial factor for new business owners.
What benefits do you offer with your pricing
By highlighting the tax benefits, I can consider pricing my services accordingly, as I'm helping clients in the startup phase of their business.
Another aspect to consider is that some potential clients may be exploring the idea of starting a business and seek information and guidance before committing.
My services provide them with the opportunity to map out their business ideas, understand the costs involved, and evaluate if entrepreneurship is the right path for them.
Pricing my services lower in this scenario makes sense, as clients may or may not move forward with starting their businesses. It's important to align the price with the value they perceive and the probability of them taking actionable steps towards entrepreneurship.
Align your pricing with client criteria
When it comes to pricing, you can align your rates with different client criteria. If your target audience consists of budget-conscious individuals, consider setting a price range that is attractive and affordable to them.
On the other hand, if you're targeting high-end clients who can afford to invest six figures or more, you may adjust your pricing accordingly, considering the enhanced value and expanded service offerings they would expect.
Pricing is not set in stone
Remember, pricing is not set in stone forever. As your business evolves, you can reevaluate your pricing strategy and make adjustments. You might choose to offer additional services or create add-on options to cater to different client needs.
The flexibility in structuring your services and pricing helps ensure that you are meeting the diverse requirements of your target audience.
I hope these insights into pricing have given you some food for thought. Remember, it's essential to consider your ideal client, their needs, and perceived value when setting your prices. If you need further guidance or have additional questions, I'm more than willing to have a conversation with you. You can schedule a call with me using this link.
Also, if you're looking for more in-depth guidance on pricing and other aspects of starting a business, I encourage you to check out my online course, which covers all the essential steps to simplify your business setup journey.
Starting a business can be overwhelming, but it doesn't have to be complicated. My goal is to simplify the process for you. So, keep it simple and remember that your pricing strategy should align with your target audience's needs and expectations.
Thank you for tuning in to this episode of "Starting a Business Simplified." If you found this episode valuable, be sure to subscribe or follow our podcast on your favorite platform. Your support helps us continue providing you with insightful content.
If you have any feedback or want to share your thoughts on this episode, don't hesitate to reach out to me. And if you're just starting out on your entrepreneurial journey and need some guidance, be sure to download a copy of our "Starting a Business Simplified" guide.
Here's to simplifying business and creating success on your terms!
Connect with Suzy Wraines:
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Download Starting a Business Simplified Guide
LinkedIn: Suzy Wraines
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