The Entrepreneur’s Moment of Truth — What Do You Charge?
Imagine that I wave my magic wand, and, presto!
You are now sitting right in front of your ideal client. (How you got here is actually not magic, but that is a related topic for another day.)
You are having a great conversation so far — you’ve engaged them around their goals, dreams, opportunities, and challenges. You start discussing how you and your business can help this prospective client overcome specific challenges that are right in your wheelhouse.
Everything is going great.
And now, you come to the MOMENT OF TRUTH.
What do you charge?
At this point, your heart pounds, your palms sweat.
I know, I’ve been there.
What if they say no?
If they say no? I understand you might be disappointed. But what happens next? Do you go into total panic? Or do you have a full pipeline of opportunities so that your business does not depend on any single client?
And what if they say yes?
If they say yes? Congratulations — you get the business. But can you deliver on what you just promised? Will you make a profit? Will this particular piece of business advance you, keep you where you are, or even worse, create total chaos or dreadful obligation in your business?
And what if they say something other than yes or no? Are you prepared for what’s next? Because very likely, the initial response will not be a straight yes or no. The client can respond with any number of questions, concerns, counter-offers, objections, or evasive maneuvers. Do you know what to do in those situations?
The price discussion IS the moment of truth, because EVERYTHING in your business CONVERGES on this one point.
Your price discussion is like the tip of a spear. It either lands on target effectively (yes), it misses (no), or it glances off and you have to do something else. Your pricing, just like the spear, is only as effective as what’s behind it and guiding it.
The ultimate success of your pricing discussion comes down to TWO CRITICAL FACTORS:
1. Strategic design
2. Effective presentation
Is your pricing model STRATEGICALLY DESIGNED for the success of your business?
Have you thought through all of the implications and interconnections of your pricing, positioning, capacity, delivery, and profitability? Are these aligned? Or are you just winging it?
And whatever your price, whether it is strategically designed or pulled out of thin air, HOW EFFECTIVELY DO YOU PRESENT YOUR FEES IN A SALES CONVERSATION? Does the salesperson — which often means YOU — have the skillset and mindset to back up your pricing strategy? If not, your pricing strategy is just an empty number on a piece of paper.
Thus strategy, skillset, and mindset cannot be separated. I know this first-hand from personal experience and work with clients on a daily basis to overcome the specific challenges related to pricing.
So here’s the good news. If you are facing challenges in the area of your pricing — it is not a problem — it is simply pointing the way towards your next step of growth. I’m here to help. If you would like help with your pricing, contact me.
