The Real Reason You Can't Raise Your Prices

If you're struggling with your confidence around pricing your products or services, I've created a short 5-minute video which is coming up, which explains my 3-step process in how to raise your prices confidently, all around mindset, validation, and time. And if you understand these 3 very basic principles, you'll be able to confidently charge more. Just for a very quick bit of context, somebody posted a question in a Facebook group asking about whether they'd set their prices too Hi. So during this video, I'm going to be answering that question directly to that person. If you've got any questions after this, by all means do drop them into the comments below. Make sure to give this video a like. It's always helpful just to help bring it to other people's attention. But let's dive straight into it. One of the things which I want you to think about is, and this is more process of self-awareness, is the language which you're using around expressing how you feel about things. Okay, so it's just perfectly normal to do it this way, but, and I'm gonna Read your question, which gives us clues about what you're thinking about things and how we can approach, you know, presenting you with a solution so that you feel happy and confident in the pricing that you're presenting to your prospects. Okay, so what you wrote was— I won't read the whole thing, but it says, I'm having a little crisis of confidence. I can't seem to shake off the bias that I have priced it too high given I'm just starting out and my course isn't yet made. First thing here is, and I'm gonna give you like 2 or 3 little strategies that you can start to apply to yourself to get more confident around your pricing. So the first one is you've used the word I a lot. So at the moment you're coming at this from a place of your own internal value system, which means that what's happening is you're making a carte blanche decision, choice, on behalf of all of your prospective buyers that, oh, I feel uncomfortable about this price, therefore you're all going to feel uncomfortable about this price. So it means ultimately you're projecting your, your lack of confidence on onto your market. And the reality is that probably you may feel like that, but a majority of your market won't. They'll actually see it as being, this is great value for money, you know, in terms of, you know, what Jill's selling here and what, you know, what value we're getting from it. So you have to kind of push your own value system to one side when you're kind of building a product and business and focus on, you know, the practical, tactical side of things. If I sell the product at this price and if I sell enough of them, is it gonna economically stack up for my business? I.e., am I gonna make enough money from this to build a sustainable business? We deal with the practical, tactical side of things, and then we can start to look at the inward sort of feelings around sort of your internal value system and how you express how you're feeling about that. But try not to make like broad generalizations on behalf of your clients, 'cause inadvertently that's kind of what you're doing. And understandably so, quite rightly, it's right to kind of question your prices. It's right to question your processes, your systems, every aspect of your business. But don't, don't question it and make assumptions, because that's, that's going to hold you back. It's going to stop you from making progress. The second thing which I would then look at is, so when we then start to push our internal value system to one side, is so that, that's the mindset piece effectively. What we've then got to move on to is stage 2, which is validation. So again, you've made an assumption that the price is too high, but Unfortunately, that's not good enough. We like to see evidence. We want you to go out and validate. If you've got a hypothesis that this is too expensive, that's fine by me, but show me the evidence. What we're talking about here is, and Alex uses the phrase a lot, statistical significance. You've gotta go out and gather enough data to justify whether your assumption about whether the price is too high or not is justified. So what that means is you need to go out and speak to 10 to 20 prospects, your ideal clients, not friends or family 'cause they'll be biased, people who may actually be interested in buying this, buying your products or service, and pitch it to them. Pitch them the value. Look, talk about the guarantees. Go through that sales conversation. But you need to speak to enough of them— 10, 20, 30 prospective buyers. And fair enough, if 100% of them all say that's too expensive, it's not, we don't see that we'll get value for money from that, well, your assumption's correct. Maybe it is priced too high. However, I've been through this process with hundreds of businesses and probably close to over 1,000 businesses actually in the last 6 years. And there has only ever been one client where we've had to backtrack on price because we have over-egged it, okay? So it's highly unlikely, in my opinion, that you've priced it too high. Again, it's just a reflection of your own internal value system, maybe a bit of imposter syndrome because you just started out. Tara Halliday has a fantastic book called Unmasking which you might want to read, 'cause that will probably start to dig into some of those mindset beliefs which you've got around the value which you're delivering. So we've got the mindset side of things, your own internal value system. We've got the validation side of things. We've created a hypothesis. Now let's go out and prove it or disprove it. So let's try and sell something at that price point. The final thing that I want you to then consider is time. Where you're at at the moment in the present, you may not have the confidence. You've got to go and pitch out to 10, 20, 30 business owners, well, or people. That's just going to take some time to get through. So don't see this as like being— most people see creating a product and selling it as being what we class, I class as binary. It's like Yes, I'm in. No, I'm not. It's too expensive, too cheap. I'm in or I'm out. It's very binary thinking because that's based on like present day, like right now. But the reality is you've got time to start to build up a pipeline of prospective buyers, pitch it, and sell it. You know, that's ultimately what we're aiming for here. So that might— set yourself a reasonable time frame to test and get data, and that might be a month, 2 months, 3 months. How quickly can you pitch 20 businesses? How quickly can you start to generate inquiries Have those sales conversations, and hopefully close some business. So remember that, mindset, validation, and time is the most important thing when you're trying to set prices, and it doesn't matter what stage of business you're at, 'cause there are existing businesses who still have these same challenges, by the way, been very established for years. And I have the conversation where I present to them and say, you need to increase your prices, and they go, oh no, I couldn't possibly do that, it's too expensive. So I have the same conversation with startup businesses like yourself, as well as very highly experienced businesses that are turning over millions of pounds. It's exactly the same process: mindset, validation, and time. And if you go through those 3 steps, you will find it'll build your confidence up. Even having one positive conversation that maybe doesn't even lead into a sale, but at least they can— you kind of get them going, actually, I can see myself doing this. That will just start to elevate your confidence, build your confidence. That will then give you the energy and the impetus to get out there and start, you know, start selling. So that's what this is all about. Hope that's helpful. Do fire any questions back at