Many entrepreneurs are so eager to help their customers that they actually do themselves and their customers a disservice by not charging them enough, or not charging them at all for their products or services. When a customer doesn’t pay, they won’t value your products or services as much as they would if they paid for them.
Join Jay on today’s Black Entrepreneur Blueprint podcast as he discusses why and what to charge your customers and why it’s beneficial for both parties.
LISTEN TO THE FULL PODCAST EPISODE NOW
BLACK ENTREPRENEUR BLUEPRINT SHOW NOTES – EPISODE # 445
Many entrepreneurs feel as if they have to give away all their content and products for free just to build a following and make money, but in all actuality, they may be hurting their customers and themselves.
It’s a common fact that people don’t value what they don’t pay for – it’s human nature.
NOTE: I understand not charging people when used as a lead magnet, like a free consultation or free eBook, etc.
Why Don’t Entrepreneurs Charge People A Fair Price For Their Products or Services?
- You think people won’t pay for the product or service
- You have an imposter syndrome and don’t think people will buy from you (lack of confidence)
- You’re scared to offend people by asking for money
- You don’t think your product or service is valuable
Why You Should Charge For Your Products & Services
Anything that helps people or makes them happy has value. The two motivating factors are pain and pleasure. If you can move people towards pleasure or away from pain, you can charge them.
Example of moving away from pain: My tax accounting business can help you reduce your unpaid taxes.
Example of moving towards pleasure: This eCommerce business can help give you the freedom and flexibility to live anywhere
What Should You Charge Your Customers?
Pricing your product or service can be tricky. Remember that your product, pricing, and perception all must be aligned to create a profitable product or service.
NOTE: You’re not selling your product/service, you’re really selling the transformation of what your product/service does.
Determine what price point your product/service is in – High, medium, or low and make sure your product, pricing, and perception are aligned.
How much value or opportunity does your product/service provide – the more value it provides, the more you can charge. Example: if you sell a training program to help people become home inspectors and you tell them that they can make $400 for one home inspection, you may charge them $1,200 for the program and you validate that price by saying that that’s only three home inspections and you made your money back.
How much money will your product/services save them – if you can show a person that they will save money then you can validate your product or service cost. Example: if you sell solar panels, you can say that these panels will reduce your monthly electric bill from your current rate of $450 a month down to $25 per month saving you $425 per month. These solar panels only cost $10,000 so in 24 months they will be paid off.