In this episode of Live Your Legacy, Chelsea Quint provides a comprehensive guide to pricing your products and services. This information-dense episode covers the basics of pricing, values-based pricing, sliding scale pricing, and various strategies to set prices that reflect your business goals, values, and market conditions. Chelsea shares her personal experiences and offers actionable steps for listeners to implement in their businesses.
KEY TAKEAWAYS
Introduction to Pricing
- The episode covers the importance of pricing, perceived value, and the emotional aspects of setting and communicating prices.
- Chelsea emphasizes the need to approach pricing comprehensively to ensure it supports your business sustainably.
Basic Pricing Strategies
- Cost-Plus Pricing: Calculating the cost to produce and deliver your product/service and adding a markup.
- Value-Based Pricing: Setting prices based on the perceived value to the customer.
- Market-Based Pricing: Setting prices based on competitors’ pricing within the market.
Understanding Your Business Needs
- Assess your business and personal expenses.
- Determine your salary and savings goals.
- Calculate the total revenue needed to cover expenses and desired profit.
Pricing in Accordance with Your Values
- Balancing accessibility with sustainability.
- Providing quality free content to increase accessibility.
- Avoiding the resentment threshold by ensuring you feel fairly compensated.
Sliding Scale Pricing
- Sliding scale allows customers to choose from a range of prices based on their financial situation.
- Offer 3-4 price points to avoid overwhelming customers.
- Clearly communicate the pricing structure and availability.
Lenses for Setting Prices & How to Set Them
- Need-Based: What do you need to make to cover expenses and achieve financial goals?
- Value-Based: What is the perceived value of your product or service?
- Market Conditions: What are the standard prices in your industry?
- Comfort and Confidence: What price can you confidently charge and feel comfortable stating?
Somatic Pricing Practice
RESOURCES
- Separate personal and business expenses and banking (plus my recs for business bank accounts).
ACTION STEPS
Assess Your Needs
- List your business expenses and personal financial goals.
- Calculate the total revenue needed to cover these.
Explore Pricing Strategies
- Determine which pricing strategy or combination of strategies works best for your business.
Implement Sliding Scale Pricing (If Applicable)
- Set 3-4 price points and limit the availability of lower-priced options.
- Communicate clearly about the pricing structure.
Use Somatic Pricing Practice
Track Financials
- Regularly track your income, expenses, and financial patterns to make informed pricing decisions.
CONNECT WITH CHELSEA
- Email: chelsea@chelseaquint.com
