124 - Back to basics on pricing your services
On this episode, my guest Jacquette M. Timmons, a financial behaviorist and owner of Sterling Investment Management, digs into all things business pricing.
As a financial behaviorist, Jacquette offers 1:1 financial and business coaching with entrepreneurs and small business owners, national speaking engagements to share perspective on the integration of the psychology and math of money, events to bring people together to discuss money, business and life, as well as a pricing made human masterclass training.
Building upon last episode's question "Everyone says research your competitors, but how do you get their pricing?" Jacquette covers the positives and negatives of competitor pricing research for service-based entrepreneurs. Everyone's business and personal finances are different and they will influence how you set your pricing. What you need to charge to cover your expenses, factor in your emotional needs, and earn enough to support your living situation may differ from your competitor.
Factor in the emotional connection that someone has to your product. Success is not just for your business, it should translate to the health of your personal finances as well. If your business is cash flow positive but your personal finances are not doing as well, it's time to reassess how you allocate your finances and personal salary.
Your pricing structure says a lot about your brand. Ask yourself if you want a low dollar, high volume business or a high dollar, high touch business. This answer will help you to create your offers. Your offer, whatever it is you're selling, should have a job - is it to generate leads to guide clients to buy your signature offer (the thing you want to be known for)? Are they free lead generating offers, like digital downloads, or paid offers, like speaking engagements, that will lead people to your signature offer? You can have multiple pillars of that offer - sometimes targeting 2 or more different audiences. Not all services providers, for example wedding vendors and photographers, need lead generating offers.
Track your finances by offer to understand what offers are bringing in the most money, especially as it relates to how much time you are investing in them. What is it that you need to feel that your business is supporting you? Is it the revenue you are bringing in? The challenges you have overcome?
You can choose to be wherever you want to be and where you want people to perceive you to be. For example, there are McDonalds hamburgers, steakhouse hamburgers, and gourmet restaurant hamburgers, all of which have their own value and their own market.
It's important to remember that you don't manage money, you manage your choices. Be intentional with your choices, even if you feel uncertain about it or its outcomes. Manage your choices and be clear about them to prioritize clarity over uncertainty.
Get in touch with our guest:
Jacquette Timmons, financial behaviorist and owner of Sterling Investment Management
Follow Jacquette and send her a voice message on Instagram
Learn how to Rock Your Finances on Jacquette's website
Like Jacquette on Facebook at Financial Intimacy