January 24, 2018

The Pricing Fear

Do you sometimes wish you could make more money in less time?

Sure, everyone does.

Okay then...

Why don’t you just raise your prices?

Lemme guess at your answer:

“Because my clients wouldn’t stand for it!”

That may be true in some cases, but I don’t think that’s the real reason.

One of the primary things I help people do (after ditching hourly) is to raise their prices.

This is not as simple as me saying, “Double your prices, ya knucklehead!”

Unfortunately, it’s not that easy...

I’m reminded of an old joke that goes something like this:

I told my barber he should double his prices and he exclaimed, “Double my prices?! I’d lose half my clients!!!”

(I think I heard this gem from Michael Port, but don’t quote me)

Simply multiplying what the student feels is the “real price” by a factor of two reliably triggers some kind of primal fear. They just can’t do it. They present no end of reasons why “It’ll never work!”

I have come to believe that the fear is not “I’m afraid I won’t land this client if I set the price so high.” It’s much deeper than that. I am starting to suspect that the real fear is the fear of being ridiculed. Being laughed at. Being revealed as an impostor.

For students to dramatically increase their prices, they have to believe in the higher price. They need to be able to say it with a straight face. They need to be prepared to defend it if the client pushes back.

The funny thing is...

More often than not, the client doesn’t push back at all.

The most extreme pricing fear response I’ve ever heard comes from Janet Kafadar. Janet is an e-learning consultant who helps small businesses develop online courses.

She came on Ditching Hourly this week and shared a very personal, inspirational, and funny story about how pricing herself too low wrecked her health... and yet raising her prices literally sent her running for the bathroom.

Definitely check this one out:

Price Sickness with guest Janet Kafadar