The Happy Pricing Manifesto
10 principles to help you price more powerfully
Getting a grip on money can afford you and your business a sea of opportunities, whatever your motivation. Yet despite this, so few of us understand it.
Money comes and goes. It’s an ever present, until we don’t have it.
It causes tension and anxiety. It excites some and scares others.
Money has power, having a hold over us whether we like it or not.
We think we’re talking about the same thing, but we rarely are. Each of us has a different relationship to it.
It can trigger us for good and bad. It can keep us up at night or help us sleep like a baby (aren’t they the same thing?).
We can worry when we don’t have it, then worry when we get it.
For business owners our hang ups about money are amplified even more.
We start out doing something we love and before you know it we do less of the craft that got us into it in the first place and more of the shoulds – writing proposals, sheepishly asking to be paid, getting into uncomfortable negotiations and ultimately feeling way out of our depth.
For creative and purpose-driven folks that aren’t in business for the money, or get scared when it comes to numbers, it can feel like pushing a boulder uphill.
All in all it would be nice if things just felt a bit easier. But where to start?
The answer could be simpler than you think
Put your prices up.
“Huh? You can’t do that. Certainly not in the midst of a pandemic.”
We hear you say.
But think about this — where has pricing the way you have got you?
Maybe it’s helped you to get going and get to this point. But it might not help you get to where you want to go next.
Pricing too low usually means bad news over the long run as it’s not sustainable. Suppliers get squeezed, margins get smaller, wages stay low and there’s no room for growth.
It can send out the wrong signals, attract the wrong customers and limit your choices.
Think about some of our favourite brands like Patagonia and Apple. Are they cheap or reassuringly expensive? Tony’s Chocolonely can charge £5 for a bar of chocolate yet we still love them. These companies have been around for a while and will be around for a while yet.
As my Mum always says “Buy cheap, buy twice.”
Pricing well doesn’t mean being greedy or fleecing your customers. It can create better outcomes for everyone, them included.
Have you ever been happy to pay a lot of money for something?
Raising your prices is a single lever which presses multiple buttons.
Maybe you’re running hard and going nowhere. Perhaps you’re winning less work than you were – the once upward curve is flattening.
Or you want to step off the hamster wheel and free up time for the projects that excite you.
A manifesto for better pricing
Think of this as a calls to arms to approach things differently. An opportunity to finally start price more powerfully, freeing you up to do your best work, attract your dream clients and make the impact you crave.
Created to challenge, to spark curiosity and to empower. We hope it helps.
1. Time ≠ money
Stop selling your time, focus on the value you create
Don’t fall into the trap of thinking that the amount you charge has to directly correlate to the amount of hours you work. That’s not fair on you or your client.
Ten minutes of your time could potentially save or create them thousands.
And conversely you could spend days on a problem that makes no difference to a client’s business.
When you sell your time everyone forgets that value comes from solving problems not working long hours.
There’s no grace in taking longer than is needed to crack a nut.
2. You are worth more than you think
Those years and experiences count for something
Imagine being paid for just being you. While you have the expertise, the knowledge and years of experience, there’s more to it than that.
Your clients aren’t just buying a solution but also good feelings.
They’re buying trust, understanding and peace of mind.
They want to work with someone who has their best interests at heart.
Your worth isn’t just about what you do, but also how and why you do it.
They may be able to go elsewhere, but they can’t get you.
3. Say no more than you say yes
Your future self will thank you for it
Saying yes to everything makes you better at nothing.
Eventually you just get overwhelmed doing work you don’t enjoy.
Saying yes too soon can also come across as desperate rather than enthusiastic.
Saying no on the other hand inspires confidence.
Saying no means you can focus on doing your best work… and get really good at it.
A good, firm no can also be empowering. It builds respect. It’s a signal that you’re in charge and are confident in your value.
4. Profit is not a dirty word
Profit can fuel your purpose
Profit isn’t just the sum of your costs plus a little bit on top.
Profit is a measure of the value you provide: your unique blend of knowledge, experience and insight.
It fuels all the impactful things you want to achieve.
It gives you the power to pay it forward and help others.
It’s not about choosing between purpose or profit, but saying yes to both.
“Money and success don’t change people; they merely amplify what is already there.” Will Smith
5. Price slowly
Don’t show your cards too early
Pricing too quickly can mean you haven’t understood the real problem.
A client may be asking you to build a website but what they’re actually buying could in fact be more customers or more time. Unless you know what it is they’re really buying you could be pricing the wrong thing.
Setting the right price comes from understanding what’s really needed. It means taking more time learning, understanding and discussing your client’s needs.
When a client asks on the first call “Can I have a ballpark?” either offer a very broad range or politely push back.
Start with “It depends on what you’re trying to achieve.”
Work with them to get clear about the job that needs to be done. Then price that.
Don’t be pressured into coming up with a price you’re not confident about. It will always be too low.
There’s no value in clients paying less for something that doesn’t get the job done.
Download the full manifesto
Includes our new pricing canvas for you to start pricing more powerfully
