The Price is Right!
The biggest and toughest challenge I find in running a business is setting up a pricing list. I discovered that this is a common challenge for most women, particularly women from minority ethnic groups, who have limited business knowledge or run businesses as a side hustle.
It’s a catch 22 in most cases; find a job to sustain a side hustle at the expense of the side hustle always being a side hustle. When it becomes your bread and butter, it’s a different scenario altogether. You are immediately confronted by this dilemma, how much should I charge? Am I completely confident in the prices charged based on my service offer? These are some hard questions.
Ironically, I have had these conversations with clients and also picked these up in other forums. What is the real issue here though? Is it culture or personality? Is it experience or skills that determines our worth? Or should it be market-based research and quality-driven pricing?
I have done some fair reading into this but I wanted to refrain from going down a rabbit hole in my research. Honestly speaking, I don’t know all the answers. I do know that I have acquired a deeper appreciation of the cost of things, being stripped of a regular income does that! So when it comes to spending money, wisdom is needed. The Bible is clear on wise spending, there is no lack of verses around money management.
Suppose one of you wants to build a tower. Won't you first sit down and estimate the cost to see if you have enough money to complete it? Luke 14:28
This year I really had to re-evaluate my financial position, carry out a feasibility check as in this verse. Yes, I did not do this prior to setting out! Maybe its because I don't like dealing with finances, not my strong point. Its true, that we tend to avoid areas of life where we have to be accountable? But in this season, God has really taught me about His provision and wisdom where money is involved. I needed some discipline and to stop procrastinating around this issue.
I wanted to offer a service that exceeded expectations. A service that signified value and created an unforgettable experience. A service built on trust and respect, where relationships were forged and lasted beyond the coaching. A worthy investment. Where time and effort would bring desired results. A service that did not compromise on integrity or quality.
On the practical side, I carried out this activity where I listed all the actions required to deliver my service. And I allocated a time and cost to each activity including invoicing and social media marketing. There are also the operational expenses to factor in. This task gives you an idea of the amount of time required to offer a service. You choose a monthly rate or hourly rate to determine how much you can live on comfortably based on the breakdown of activities and costs. Of course there’s always room to improve, it’s a starting point.
I was doing the math, calculating the cost. And the numbers were modest. It reflected what I envisioned and God purposed for this season, contentment in His provision.
Ecclesiastes 4:6 Better one handful with tranquility than two handfuls with toil and chasing after the wind.
Hebrews 13:5 - Keep your life free from love of money, and be content with what you have, for he has said, ‘I will never leave you nor forsake you’.
When considering purchasing a product or service, especially where small businesses are involved, you are supporting a big dream! And its literally a one-man show! However, keep at the forefront that as long as you are getting what you paid for? Realistically. Then it was a fair exchange. However, if not, please provide feedback to help the business improve. If you get more than you bargained, then your expectations were exceeded so please spread the word!
I have always made clear from the start that I wanted to serve others through coaching. Not because I have answers to life's most important questions, quite the opposite. But admittedly, that is the beauty of coaching – I am not a subject matter expert on life. You don’t have to ‘know it all’ to be a successful coach. I believe that having a huge amount of zeal and passion to create a positive impact through coaching is a good starting point. My abilities, skills and knowledge are a gift from God and that is what places me in the perfect position to coach well. Money is important as it keeps the business in business. It adds value to the exchange. You know that your hard-earned money was not squandered, but brought you clarity, renewed confidence and encouraged you to shine your light in order to inspire others too.
On that final and separate note, it is sometimes useful to ponder this question when making a decision where time and money is involved, what is the opportunity cost? Opportunity cost is the forgone benefit that would have been derived by an option not chosen. To properly evaluate opportunity costs, the costs and benefits of every option available must be considered and weighed against the others.Its about thinking of the long term benefits vs short term gains. But it can be individually based. And can be related to energy and relationships. In our humanness, however, it is our downfall, we are impatient and want immediate results.
I hope this post was enlightening if not informative. If you’re interested in finding out more about what I offer, get in touch. The question I leave with you is - what have you spent on yourself lately that brought you so much joy? Ponder whether is was related to your dreams or completely non-related, had long term benefits or, short term gains. Then the price is right!