From Pricing Woes to Pricing Pro: 5 Expert Tips to Avoid the Most Common Pricing Mistakes

07/10/23 • 28 min

Pricing is a much undervalued business topic. It has a bigger impact on your profit than anything else in your business – yet if you’re like most people you don’t often give it much attention. Studies show time and again that of the four profit levers (price, volume, fixed costs and variable costs), price has the most impact on profit. Yes a bigger impact than your costs. This surprises most people. And it’s counter to how they are working.
Consider for a moment what most businesses do when profits start falling? That’s right they start reducing costs. But if you understood that your prices have a bigger influence on your profit wouldn’t you also give your at least the same attention you do costs?
Of course you would, put that why it’d be silly not to. Logically it makes sense but that’s not what you’re doing.
And if you’re a new business, failing to give pricing your time and energy will make it harder for you to get your business engine running (i.e. build profitability) and achieve your business objectives. t also makes it hard for you to tell the “Profit Story” of your business to investors, potential business partners and other interested in working with you.
The good thing is that most pricing mistakes are avoidable. But first you’ve got to know what to do to not repeat the mistakes your making or the ones you haven’t even thought of yet.
In This Episode
In this episode I’ll share with you 5 of my expert pricing tips to help you avoid the most common pricing mistakes. Let’s take you from pricing woes to pricing like a pro! We’ll first look at 5 of the most common pricing mistakes and then I’ll share with you actions you can take to lessen the chance of you making those errors.
Podcast Highlights

0:00 Intro
2:17 Mistakes Number One to Five
5:39 The Leaky Bucket Concept
8:03 Tips to Avoid Pricing Mistakes
17:30 Not a Right Strategy
25:18 Wrapping it Up

Episode Links
How to do Customer Insight Interviews: https://thepricinglady.com/betheexpert/
How to set Prices group program The Fair Price Formula:https://maven.com/the-pricing-lady/fairpriceformula

Don't go yet. If you're enjoying the show please rate and review. It helps us spread the word to more people and ultimately get more small businesses on the path to sustainable profitability and business success. Thanks for Listening.
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Reach Out, Connect, or Book a Call with Janene
Get started improving your business. Sometimes it’s difficult to know where to begin. I suggest you Download the self-assessment Pricing Scorecard (https://thepricinglady.com/pricing-self-assessment-scorecard/). Get a view of what’s working and what’s not working when it comes to pricing in your business. Figure out where to start making improvements.
Get in touch with Janene. If you’ve got a question that needs answering, a challenge you’re facing or you have suggestions for future topics or guests, let me know. Contact Janene (https://thepricinglady.com/book-a-call/)

Send us a text

0:00 Intro
2:17 Mistakes Number One to Five
5:39 The Leaky Bucket Concept
8:03 Tips to Avoid Pricing Mistakes
17:30 Not a Right Strategy
25:18 Wrapping it Up

Previous Episode

Profit Puzzles: Decoding Pricing, Value, and Crowdfunding Campaigns

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Understanding value is the key to unlocking pricing and profits. Often profit puzzles people - they just aren't sure how to leverage what they've got. At the same time the more you learn and understand value, the more you realized it's everywhere.
Crowdfunding campaigns are no exception. When you put together the packages people can "buy" or the offers for sponsors of your crowdfunding campaign - you have to think of value. And that's what this week's guest, in part has come to share with us.
In This Episode:
I recently sat down with Margit Takacs, Change and Culture consultant, trainer and coach. She shares with us her own pricing journey. From being in the corporate world to venturing out on her own to her experience crowdfunding the writing and publishing of her newest book.
In the past, I've support people in putting together their crowdfunding packages. In many ways it's the same as offer building and pricing in any other context. But as Margit shares with us there's an added element of value to consider. I loved this conversation and if you're running your own campaign or if you've thought of publishing your own book you'll definitely want to learn from her experience.
Enjoy the episode!
Podcast Highlights

0:00 Intro
1:49 Getting to Know Margit
4:10 The Value of Working with Margit
7:48 What Led Margit to Start Her Own Business
10:06 Pricing at the Beginning
12:11 From Funding to Publishing
22:39 Calculating Goals and Investments
25:33 Unveiling the Marketing Puzzle
30:04 Wrapping It Up

How to reach Margit:
LinkedIn: https://www.linkedin.com/in/margittakacs/
Facebook: https://www.facebook.com/margit.takacs.12/
Don't go yet. If you're enjoying the show please rate and review. It helps us spread the word to more people and ultimately get more small businesses on the path to sustainable profitability and business success. Thanks for Listening.
*********
Reach Out, Connect or Book a Call with Janene
Get started improving your business. Sometimes it’s difficult to know where to begin. I suggest you Download the the self assessment Pricing Scorecard (www.thepricinglady.com/pricing-scorecard). Get a view of what’s working and what’s not working when it comes to pricing in your business. Figure out where to start making improvements.
Get in touch with Janene. If you’ve got a question that needs answering, a challenge you’re facing or you have suggestions for future topics or guests, let me know. Contact Janene (https://thepricinglady.com/contact/)
Transform your business and life. My business is about helping you build a better business. One that’s profitable and where you can confidently charge for the value you deliver. Let’s see how we can work together. Book a complimentary Discovery Call today! (www.thepricinglady.com/book-a-call)

Next Episode

Overcoming Objections: The Worst Way to Respond to Pricing Objections

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Pricing objections will come, as a founder or business owner it's important to prepare yourself (and your team) for when a client prospect says, "No thank you." Whether it's because it's too expensive or they don't know if they need it or something else, knowing what to do next can feel confusing or even a bit scary. Certainly it can leave you wondering how to respond in the best way possible.
It's not uncommon to feel super confident telling people about your offer, after all that's your thing. You could talk about that all day long. At the same time when it comes to talking about how much people need to invest in your product or offer, you might feel a total lack of confidence. Then compound that with someone rejecting your offer and "Bam!" you're in uncharted territory - nervousness kicks in and it gets harder to know what to say.
My clients often voice concerns about handling pricing objections confidently (some even ask how to avoid them - you can't and shouldn't strive to) and are curious about what arguments they can use to defend their position. And while you do want to understand the value and communicate it well, launching into a defense when you get an objection is not the best response.
This episode was the result of countless questions from people just like you who have found themselves confronted with pricing objections. The urge to defend your pricing is natural, but there's a better way forward.
Join us as we delve into the art of asking the right questions and truly grasping the objections raised by your customers.
In This Episode:
Listen and discover invaluable insights into the skill of handling objections gracefully and strategically. Learn simple techniques to get to the bottom of why they are objecting. Getting curious about their response takes the pressure off you so you can more confidently and uncover mutually beneficial solutions with your customers.
Whether you're a seasoned entrepreneur fine-tuning your pricing strategies or a newcomer seeking guidance, don't miss out on this episode. Bid farewell to the fear of pricing objections and embrace newfound confidence in your pricing journey.
Podcast Highlights

0:00 Intro
1:50 Strategies for Responding
4:13 Unveiling the Real Reason Behind
6:36 Turning Objections into Opportunities
8:02 Wrapping it Up

Episode Link
The Fair Price Formula: https://maven.com/the-pricing-lady/fairpriceformula
*********
Reach Out, Connect or Book a Call with Janene
Get started improving your business. Sometimes it’s difficult to know where to begin. I suggest you Download the the self assessment Pricing Scorecard (www.thepricinglady.com/pricing-scorecard). Get a view of what’s working and what’s not working when it comes to pricing in your business. Figure out where to start making improvements.
Get in touch with Janene. If you’ve got a question that needs answering, a challenge you’re facing or you have suggestions for future topics or guests, let me know. Contact Janene (https://thepricinglady.com/contact/)
Transform your business and life. My business is about helping you build a better business. One that’s profitable and where you can confidently charge for the value you deliver. Let’s see how we can work together. Book a complimentary Discovery Call today! (www.thepricinglady.com/book-a-call)

Live with The Pricing Lady, the Podcast - From Pricing Woes to Pricing Pro: 5 Expert Tips to Avoid the Most Common Pricing Mistakes

Transcript

Janene: Today, we're going to be looking at five tips to avoid the top five pricing mistakes. Let's take a quick look at what those mistakes are.
Mistake number one is you have the wrong price positioning. This is usually underpricing. It can also be overpricing, but most people who come to my door to get help from me are underpricing themselves.
There are many reasons for this. Sometimes it's because they fear repercussions from clients and customers. Sometimes it's be