Transcript: Did you know you may not be charging enough money; your price may not be high enough. How do you know that? Well, it is hard to identify an exact price. A lot of people want to identify an exact price for a service or relationship, and you can’t really do that. Why is that? Because prices are identified by value and value that’s the thing that we have problems with. Value is so subjective, that is the thing we can’t nail down. So it’s hard to do pricing. Though it’s a very simple concept, it’s hard to identify somebody’s value appropriately. But you may not be pricing enough.
Here’s what we tell firms. If we work with them to build a really robust, let’s say, client onboarding process, something that is really robust, what we want to see them do is raise their price at the end of the process. Why is that? Because anytime a firm increases in its ability to provide consistent value to a market that it’s serving, anytime it can do that or prove that it does that over time, then it’s more valuable, and if that firm is more valuable, the price should increase.
As we work with firm entrepreneurs over the years, as we see them mature, we try to push them to raise their price, too, because as you mature, you become more valuable, hopefully. Hopefully your maturity comes out in more value to your clients. Then you should be asking for far more money in return because of your value.
Just keep that in mind. If you’re thinking about some things you’ve been doing that drive more consistent value to your clients, it may be time to raise your price and start to get the money that really is required for you to scale and get your capacity paid for in different ways.
I hope that helps. We do this kind of complex work with firms in Thriveal, so if you need our help, let us know at [email protected]. Thanks so much. Take care.