Katie McManus argues new business owners shouldn't price too low early on. Selling $97 offers requires an impossibly large audience to replace a six-figure salary. Instead, land a few high-paying clients first to create the financial breathing room you need.
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You know that scene in Pretty Woman when Julia Roberts goes into that fancy boutique on Rodeo Drive and the sales associates at that boutique look at her and she's still dressed like a smush worker and they make a major assumption that she will not be able to afford anything in the store. And are they super rude about it? Yeah. But do they also have a point? Yeah. When you have a business, there are always going to be people who are interested in what you have to offer but cannot afford to work with you. It's just a fact of life that different people have different budgets for different things. And the mistake that a lot of new business owners make is that they imagine going into a business asking how much something costs, hearing that it's way more expensive, and feeling that shame that sets in, knowing that you just can't afford it. And like the shame of having to admit, ooh, that's out of my price range. And based on that projected fee feeling they decide that they want to make their work so super affordable so that anyone can buy. And while that is very noble, it also shoots you in the foot. And I'll make a few more videos talking about why that actually doesn't work to build your business. But here's the advice I want to tell you that I tell my clients, you can't pour out of an empty cup. I want you to imagine that you quit your job today and you're working full time in your business for the next year and you're selling an offer that is super affordable for everyone to buy. Maybe it's something that's like $97. I want you to think about how many of those you'd actually have to sell. While you're thinking about that, I want you to look at your social media accounts and I want you to see how many followers you have. I want you to also look at your email system and see how many subscribers you have to your newsletter. And if you're early on in your business, there's no shame in this, but those numbers are probably pretty low where, which means you have a very, very small pool of people to potentially sell to, which means that's going to be so hard for you to sell that $97 product. And as a result, it's very unlikely that you're going to be able to replace your six figure corporate salary by selling just this $97 thing. For you to be able to be in business for the long term and have it be sustainable, you have to get a few high paying clients in the very beginning and that's exactly the focus that I have in my most affordable program, the build your own business group program. The whole purpose of that program is to help you get your first five high paying clients because once you have those then you have the financial bandwidth to create an offer that is far more affordable so that you can help more people who wouldn't be able to work with you one on one. And if you're worried about being one of those like snotty boutique salespeople, just the fact that you're worried about it means you will never be like one of them. Hi I'm Katie your practical business coach and new business owners work with me so that they can leave their corporate 9 to 5 and replace their 6 figure salary by doing work they love and by helping people. If you want to help more business owners see this then engage from the bottom up. Follow me for more and please send this to someone who you know needs to see it.
