Why You Shouldn't Apologize for Your Prices
Updated 12/21/24
One of the first things I discuss with clients is their pricing. In nearly all cases, their prices are set too low to create a sustainable business they won’t grow to hate.
When I ask how they feel about their pricing, I get a range of reactions:
“They are ok, I guess.”
“I don’t think anyone would pay more.”
“I need to raise them, but I’m scared I’ll lose my clients or no one else will hire me.”
It isn’t unusual for my clients to even be reluctant to talk about their prices! Ir makes sense when you think about how often people talk about looking for someone with “reasonable prices” or “something that won’t cost an arm and a leg”. But the challenge with both of those statements is that they are essentially meaningless because they mean something different to everyone.
Why? Why Is talking about our prices and money taboo?
Why do we feel the need to apologize?
Why shouldn’t we be just as proud of our pricing as we are of the work we do?
Why we aren't our ideal client
Let’s break it down and examine the pieces. First, it is easy to imagine ourselves as our ideal client. After all, we love what we do, right? We’d be a perfect client! But! In most cases, we aren’t our ideal client at all. Take a moment and jot down the differences between you and your ideal client.
As an example, I love SEO and social media, so it wouldn’t make sense to hire someone like me to do what I do because I enjoy it, and it is fun for me. My clients, on the other hand, would rather hand it off to me or have me help them through it.
I’m not a fan of most online courses, but one of my most popular “products” is my Marketing Beyond Social training (an online course)!
On the other hand, I’m not a very crafty person, so paying an artist for their creation or paying someone to create a costume for my youngest is not only a great way for me to spend my money, it makes my life lighter and less stressful! And I have the added benefit of supporting another small business. That is a win for everyone involved!
Remembering that we aren't our ideal client, especially when we're starting out and charging too little, is vital. I think it is even more important if we’re already coming from a place of money scarcity and feeling as if any sale is a good sale.
Knowing who is, and isn’t, your best client is an essential part of every small business marketing strategy.
Can you “give back” and still have a business?
A common desire many of the people I work with have is wanting to “give back” to their communities in different ways. They often start with their business because it is a way that feels accessible to them. As admirable as that it, it isn’t always practical for long-term business sustainability. In fact, it can lead to burnout and exhaustion.
So here’s the question - can you still “give back” and have a business? Absolutely! But consider waiting until your business is stable, and you have a clear idea of your boundaries, so you can give back in healthy, long-term ways. For example, I regularly do pro bono marketing consulting for non-profits and others, but draw the line at social media management because it is so time-consuming and is more of a long-term project.
Yes, I completely understand the desire to make what we do accessible to everyone, but you can't be so kind to others that you are damaging your health & relationships by running yourself into the ground trying to serve everyone.
There are also some limited times when offering free work helps you build your portfolio and experience when you are just starting out. If that’s where you are, make sure you know your limits and everyone involved has a clear understanding of what is and isn’t included and how long the free work lasts or what it specifically entails.
You don't control someone else's finances
We need to let go of the guilt or responsibility around whether someone can afford what we do or what we sell. If someone can’t afford us, that’s ok! It doesn’t make us a bad person for sticking to our prices, just as it doesn’t make them a bad person for not being able to afford what we offer. It just means they aren’t our customer (right now).
If what you offer is worthwhile to someone, then they will pay it. If not, it isn't worth it to them, and that isn't anything we have control over.
I doubt a Land Rover salesman feels bad that I'm not a Land Rover customer - no matter how much I want one (ok, I don't actually want one, that was just the first car name that came to mind!).
You must cover business costs and expenses
When it comes to your pricing and who can afford it, you also need to think about the cost of running your business.
Those costs include taxes and expenses, and that can really add up! If you aren’t covering those very basic things with your pricing, while still leaving enough left over to live on, you won’t be able to sustain your business. Or you’ll grow to resent it because it costs more money to run your business than you make.
For example, most photographers typically have “client facing” work that looks like taking photos for 20 minutes. But what the client doesn’t see is the education, continuing learning, equipment costs, travel time for on location photo shoots, studio rental for indoor photo shoots, insurance, and hours of editing that happen after the photos are taken.
If a photographer based their prices only on the 20 minutes of work taking the photos and didn’t account for any other expenses, they wouldn’t be in business for long! If you’re a photographer, read more about photographers and pricing here.
And while you shouldn’t apologize for your prices, this is where client education can be an important part of your marketing strategy, especially when your business has costs or requires time commitments the consumer may not see. Incorporating behind the scenes work into your marketing strategy (in addition to doing stellar work) can be helpful for showing your client everything that goes into your work.
Looking for more strategy around setting your prices? Check out this blog post about why asking “What would you pay for this?” is the wrong question to ask.
How do you stand firm in your pricing?
Be clear around what you offer and the process. If, like photographers, your work involves a lot of behind-the-scenes action the client may not see, you’ll need to be extra clear around the benefits and upfront about the amount of work you do on your own to get the end result the client loves.
Focus on the quality of your work and the benefit to the client.
Believe in yourself and what you bring to your client – not every client will be the right fit, but you can be the perfect fit for the right client.
Practice saying, “These are my prices, and I’m happy with them.” – yes, you’ll feel silly at first, but that is all you need to say to someone questioning your prices and your value. You don’t need to pull out a spreadsheet, a Venn diagram, and give them an hour lecture on how you arrived at your prices (no matter how tempting it is!)
Finally, and this is going to sound a little out there, but stay with me!
Imagine your business is a tree with deep roots that are well cared for and strong. When someone complains about your pricing, imagine it is like a gust of wind. Imagine your business tree swaying in the wind as the gust of wind passes by.
Neat image, right? No harm to the tree, no harm to the gust of wind – it just wasn’t a good fit right now.
Ready for support when it comes to developing your marketing strategy? Let’s talk about a marketing roadmap you can follow!
