About a month ago I published a podcast episode, Know your worth, and stick to it. Just recently, I received an email from someone who was inspired by that episode, and had some questions to further add to the conversation. They asked great questions, essentially what they’re asking about is the relationship between pricing & worth. Here’s what they asked.
Would you say that your worth is also influenced by how you price yourself?
Their are many factors that go into establishing worth in a brand/product. Pricing is definitely one of them. There’s a popular phrase that says, ” you get what you pay for,” which directly refers to the worth of a product relational to the price. Spend more money, get more worth
Most entrepreneurs who sell their creative services that I’ve worked with charge too little. I wrote about “knowing your worth” in the past, and it’s an extremely important thing to keep in mind. With low prices, not only are we hurting our businesses by not maximizing potential profits, we may also be giving off a sense of low worth to the potential client.
Let’s say I was looking to get a website done, I know that I should expect to pay a few thousand, however, I meet a freelancer who gives me an estimate of $500. I immediately think that they have no idea what they are doing. The person could in fact be very good, but the pricing makes me feel like it’s low quality.
Would you say you should manipulate prices to give off an impression of worth as well?
Short answer, No. You should never portray something that you are not. Price influences worth, but if you aren’t actually worth it, that’s just bad business. As a rule, you’d want to keep a high level of honesty & integrity when dealing with professionals. All this will do is give you a bad reputation. In my own career I’ve found that a great bulk of my revenue comes from referrals, word of mouth. Therefore, being honest and providing the best absolute service is of the up most importance.
When it comes to finding a reasonable pricing model, we must take a good look at our business and give a fair evaluation. We can scope the industry to similar people who do what we do and compare their rates against our own.
If you are charging me $10,000+ for a website, I expect a professional job done. The execution needs to be timely, the service needs to be of quality, and the overall experience must to be exceptional.
Pricing does influence worth, within reason, the higher something is priced, the more worth it is given. With that said, all pricing must be backed with worth. Manipulating pricing only hurts us and our brand.
Throughout my career I’ve gotten familiar with pricing of different services & products. If you are looking for some help with your pricing, work with me.