You are no bargain.
Do you charge based on your hourly rate or based on the value you provide?
Do you know the difference?
Value-based pricing is pricing based on the results you offer.
(This is how millionaires make their money. T. Harv Ekert talks about it in his book “Secrets of the Millionaire Mind” and Rachel Rodgers talks about it in her book “We Should All Be Millionaires.” It’s also what we teach in EmpowerU Business Academy.)
Historically, companies have set prices for their products and services based on what it costs to produce them. They add a little profit on top, and voila– you’ve got your price or hourly rate.
Entrepreneurs look at what their competitors are charging, and they determine their own prices based on this information.
They’re trying to be competitive in the market and win price-shopping clients.
Value-based pricing is a pricing method that focuses on the value received by your customer or client.
With value-based pricing, you quantify the results of your labor rather than the labor itself.
Rachel Rodgers gives a great example in her book:
- You’re a copywriter and you charge $100 per hour.
- A company wants to hire you to write 10 newsletters.
- You know it will take you 10 hours, so you quote $1,000.
- The company makes $300,000 off of their $1,000 investment with you.
You could have easily charged $10,000 and it still would have been an excellent investment for the customer or client.
Now, you have to remember that as you use them, your skills improve.
So in 6 months, you might be able to write 10 newsletters in 5 hours instead of 10.
In your hourly model, you are now only making $500.
Should you be penalized for working efficiently?
Hell no. You shoot yourself in the foot when you charge by the hour.
The faster you work, the less you earn.
So you actually have to take on more work to make the same money you were making before.
With value-based pricing, your efficiency and expertise make you richer, not poorer.
A value-based online wellness entrepreneur thinks about the transformation she is delivering, not the time she is spending.
She trusts that her client doesn’t care how long it takes to get the work done.
The client cares about getting kickass results.
Your pricing is part of your marketing strategy. It’s part of the energy you put out into the world, and the abundance you invite into your life and business.
Your pricing should say: “The transformation I will lead you to is worth ____.”
Your pricing should not say: “I’m a bargain.”
If you price like you’re a bargain, we promise you: You will serve like you’re a bargain.
And if you serve like you’re a bargain, your clients won’t get the transformations they’re looking for.
So they won’t tell their friends.
In EmpowerU Business Academy, we help you set up 3 paid offers (in addition to lead generation freebies and passive income opportunities):
- Your 1:1 offer in Module 3.
- Your low-ticket offer in Module 8.
- Your mid-ticket offer in Module 10.
In each of these modules, we’re going to guide you on how to price your offers appropriately so that you are charging what you’re worth, reaching the maximum number of clients, and having maximum impact.
You are no bargain.
In abundance and profits,
Artemis + Eric