WW 162: The Goal Setting & Pricing Mistake You Need To Stop Making - Solo Show
Pricing your services is a pain point for every small business owner at some point in their business, but setting prices that aren’t in line with your revenue goals can be detrimental to your business. I recently created the Online Coach’s Pricing Workbook to counteract these pricing mistakes, but want to dive into one specific issue that is both a pricing and a goal setting mistake, so that you can stop making it and start crushing your revenue goals! Loving this episode? Take a screenshot and share it on Instagram! Tag me so I can send you some love (@Tess_Wicks)
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A Quick Recap from this episode
As an online coach and business owner, we’ve all made our fair share of pricing mistakes, which is why I just recently launched the Online Coach’s Pricing Workbook, because I wanted to help online coaches fix these mistakes and start charging the right price for their services.
In this episode, I want to dive into one specific area of the workbook that is both a pricing mistake AND a goal setting mistake, and that mistake is setting a “price based on basically nothing.” This pricing doesn’t get you to your goals.
I have always been obsessed with my numbers and how my goals get me to those numbers, but I know that not everyone thinks this way. Your pricing makes up your revenue. Where I think a lot people fall short when it comes to revenue is not realizing that in order to set revenue goals you have to work in the foundation and adjust the pricing of your services to reflect the goals that you’re trying to reach.
If you find that you aren’t hitting your revenue goals, and they’re off by something like 50%, then you either have a pricing/offering problem or a target audience problem. Meaning that you’re either not pricing your offer high enough or you’re not bringing in enough clients for that offer. Your price x your offering x the number of times in a year you can offer this should equal close to your revenue goal.
You need to come up with your revenue goal and then work backwards to break down your pricing. Stop setting your pricing in a compartmentalized way as if your revenue goals and pricing don’t impact each other. You can’t rely on the “magic” (extra streams of income that aren’t your main revenue stream) for more than 50% of your revenue goal.
So here’s what you can do to solve this problem and deconstruct this issue. First, you need to uncover what your purpose-driven revenue goal is (this is something we do in the Payday Party Workshop!), but this takes into consideration the lifestyle that you want to have and then you back into a revenue goal from there.
After that you need to uncover what the capacity is for serving your clients. You have to make sure that your capacity to serve at your pricing can actually get you to your revenue goal. If you realize you need to raise your prices to reach that goal, you need to look at if your clientele can actually see the value in that price and pay for it. You may need to not only deconstruct your offering here but also offer it to a different (and possibly higher-paying clientele).
When we continue to fall short of our goals year after year, it really does a number on a confidence and blinds your ability to see the value in your business. You have to be logical about the way you run your business and set your revenue goals and pricing.
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