Be Confident In Your Pricing

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Lately I’ve been talking with a lot of small business in the wedding industry about their pricing strategy.  I’ve heard the gamut of package options, pricing choices, services, and products.  What surprises me most in these conversations is the lack of confidence behind them.  “This package is $5500 (I guess).”  The wedding pro doesn’t actually say “I guess” but the tone of her voice makes it seem like she has.  {Note: I’m referring to “her” and “she” because unfortunately this is something that seems to plague the women wedding pros more than the men.}

You wouldn’t second guess pricing of someone else’s product.

I used to work for Coach handbags as a merchandiser.  When doing an installation in a shop, sure enough someone would always think I was a salesperson and would want to know all about the lovely handbags I was putting out on the floor.  “How much is this bag?  I love it!”  I would reply, “It’s $849.  Look at all the gorgeous folds in the leather and the rivets.  The details are out of this world.”  Done.  Factual.  No ifs ands or buts about that price.  It is what it is.

Now, why is it that when we present our own products and services we aren’t matter-of-factual?  Why is it that we second guess ourselves?  Why do we sound so unsure?  Are we unsure of the price?  Are we unsure of our ability to deliver?

Confidence and conviction sells.

Confidence is the one characteristic that sets apart someone with 10 years experience from someone who has been in business for 1 year.  Confidence is a competitive advantage.  It takes time and practice, like anything else, to gain confidence.  Work on attaining this characteristic.

How did I gain confidence?  Here’s some of the things that I did, over time:

• I’ve gained complete understanding of my cost components: raw materials to produce my goods, labor/time that it take to produce goods.  By knowing exactly what it costs me to produce my goods, I am better skilled at pricing.  It becomes less about a “feeling” and more about “knowing”.
• I am working for a profit. What good is it for me to produce invites for someone’s wedding if I’m not making a profit off of it?  I need to earn a living.  I’m not here to be the wedding fairy by doing jobs for free.
• I realized that many people said I was “inexpensive”. At my first bridal show in 2006, my booth was swarmed with people.  Many of these people were saying “Wow.  These prices are really good.”  YOWZA!  RED FLAG!  If anyone says that… if they admit it openly… then your prices are tooooo low.
• I closed in on a narrow niche. By having a specialty that no one in my market does and by knowing exactly what I’m good at and what I want to do, I’m better able to identify the clients with whom I want to work with.  Having a solid niche brings strength to your pricing.
• I learned to “shut up”. Saundra Hadley made an EXCELLENT point last week at Eventology.  When giving a client your pricing, do not make excuses: no “ands” “ifs” or “buts”.  Do not say, “This is $5500, but…”  You would NEVER say that about a Coach handbag.  Why do you shoot yourself down before the client is able to respond?
• I learned how to pitch myself better.  Sometimes it’s not about the product or service, but it’s about us.  We aren’t confident in ourselves.  I was a member of Business Networking International (BNI) for a couple years in Seattle.  Each week, I had to give a 1-minute speech about my business.  By perfecting these speeches, I was better able to present my to the client with confidence.

Becoming confident is something you MUST achieve

Add confidence to the list of things you must learn how to be.  Work on this every day.  It takes time to perfect, and practice is the only way to get there.  Do the 6 methods I described above, until you can meet with that client and speak with conviction.