When, Selling High-Ticket Prices, becomes Impossible for Female Entrepreneurs
What pricing strategy are you using as a female entrepreneur? Is it the right one for the product or service you offer? What factors do you include when you’re determining your prices? How can you use your pricing to maximize sales and profits, and beat the competition?
Developing a pricing strategy can be really tricky. There’s a lot to consider. On one hand, you want to have offers that are attractive to as many consumers as possible. On the other, hand you want to get as much profit as you can, too. How can you strike that balance?
As a business coach for businesswomen, and a businesswoman myself, I understand the crucial role of a good pricing strategy in scaling and growing your business. But I must say that it’s not the only thing you should focus on. There are many areas in your business that you need to work on if you want to be truly successful.
In my system, “The Women’s Blueprint to Business Success,” I address 9 areas in your business that you constantly need to tend to.
Employing a good pricing strategy is a subpart of Area 4, which is Sales. You must always look at your business as a holistic entity, and as such, you need a holistic approach to growing it. Learn more about it here.
Here are some tips you should consider when you’re developing a competitive pricing strategy.
1. When determining your price, make sure to charge enough to cover the costs and more
It goes without saying that when you’re determining your price, it includes the price of producing or performing your product or service — plus your profits, of course. But these aren’t the only factors you need to take into account when coming up with a pricing method. Here are a few more:
- If it’s a product, make provisions for the packaging and shipping costs
- If you’re selling online, take into consideration the costs of the systems that you use such as website hosting, payment methods, and so on
- Also include your budget for advertising and marketing, as well as research and design
2. Check the prices of your competitors when you’re creating your pricing strategy
One important factor that consumers consider when choosing which product or service to purchase is the price. And more often than not, people tend to choose that which has the lower price. Especially when they think that their options are of similar quality.
When you’re offering a service, this may not seem as significant because no two are exactly alike, and comparison is not entirely possible. The same is true when you have an offer that’s one-of-a-kind, something that no one else has. Then you can charge as much as you want.
For products, however, it’s a different story. If you’re selling a product that has many others like it in the market, consumers will be able to compare. And the more price-conscious ones are, the more likely they go for the products with a lower price. If this is the case, you can gain an advantage by offering a discount on a second product or offering an extra service so that comparing won’t be possible anymore. This will encourage more customers to go for your product, resulting in a higher volume of sales.
3. A value-based pricing system can be more effective
Value-based pricing is all about knowing how much your target customers are willing to pay for something that they value. It puts more focus on the customer than the cost of making the product or service. So knowing who your ideal clients are is essential when you’re using this pricing method. What do they like? How much are they willing to pay? When you know this, you will be able to adjust your prices accordingly.
To give an example of this pricing, sustainable or eco-friendly products have much higher prices, but environmentally conscious consumers will be willing to shell out that cash. Health-conscious consumers will pay more for organic produce and other healthier options. People who like unique pieces will spend more on custom-made items.
Customer experience also factors in when you’re using this pricing model. If you can provide an outstanding experience that they won’t find anywhere else, you can set a price that you believe is worth it. Define who your target audience is and learn what they want. When done right, a value-based pricing strategy will not only drive your sales up, it will also promote customer satisfaction and loyalty.
4. Tell a story
Another way you can set yourself apart from your competitors is by creating a story around your product or service. Consumer behavior is all about consumer perception. The more you are able to connect with your target audience, the more inclined they will be to purchase from you.
You can do this by creating a narrative that resonates with your target audience. What are their pain points? What design appeals to them the most? What words do they use? Knowing these kinds of information will help you know how best to communicate with them.
5. Never ask a price you don’t feel comfortable with
Asking high-end prices is what every female entrepreneur wants. This comes with an attitude that most women don’t have when they start their businesses.
When they can’t see, feel, or believe the value they are offering to their clients, it is very difficult for them to sell high tickets.
My tip is: Sell it for a price you feel comfortable with and raise it after selling it three times. This will help you build trust in your own selling capacities so the client can feel your confidence, and everything feels in alignment with your price.
6. What does it mean when everybody buys?
When everybody buys from you this can have 2 reasons.
- You can sell bloody good. For most women, this is not the case.
- Your prices are far too low. And that is most often the case for women. When nearly everybody buys from you it is a great indicator to know you need to raise your prices.
Summing it up
There’s a lot that you need to consider when determining which pricing strategy to use. As a female entrepreneur, you should ask yourself: How can I charge the best price so I can maximize my profits and grow my business?
To do this, you can’t just focus on your pricing. You also need to work on how you should brand yourself to set you apart from your competitors; how you can engage your audience and generate leads; how to position yourself so you can attract your ideal clients. Your business is a holistic entity, and as such requires a holistic approach. You can’t just work on one area and expect a drastic change. You need to work on all areas all the time. I know that’s not easy to do, especially if you’re a solo female entrepreneur. But you can always learn from an expert, a mentor, or a business coach for female entrepreneurs, such as myself. You can learn more about my system, “The Women’s Blueprint to Business Success” here, or schedule a quick 15-minute call with me here.
My name is Tineke Rensen and I am a business coach for women. I created the system “A Women’s Blueprint for Business Success,” where I work with female entrepreneurs in 9 major areas in their business.
There are many out there who call themselves “business coaches” but have never had their own business. What you need is a business coach who has experience in scaling and growing businesses. And I’ve had plenty. In my 31 years of experience, I’ve become an expert on many areas, and I can help you with whatever topic you need help with. Because it NEVER is about changing just one thing that’ll pivot your business around
If you want to learn more about what makes a good business coach for women check out this article about the 20 questions you should ask a business coach for female entrepreneurs.
Interested to learn how you can work with me one-on-one to build your one-woman gig to a proper business and double your income within a year? Click here now to schedule a quick 15-minute call with me and get started.
About the author:
Tineke Rensen of Powerful Business Academy has been in business for 31 years. She built an international Outdoor and Survival business from scratch and sold it after 22 years.
Tineke was also a national whitewater kayaking champion.
She now is one of the most all-round business accelerators and mentors you can find. She helps businesswomen to “Scale & Grow, Make More Impact And Work Less.” There are very few topics she cannot help you with in your business. Many people find this hard to believe, but hey, how much do you think you know about scaling businesses if you live it day and night for 31 years?