5 Common Pricing Mistakes
A graphic designer recently confided that she really had no idea if her prices were right. Her firm was successful, and they made decent money. But she knew some firms charged quite a bit more, and she wondered if she could raise her rates. At the same time, she hated that her firm lost work because they were too expensive, and she knew she could work on a smaller profit margin and capture more work. “Shouldn’t someone who’s been doing this for years have this figured out by now?” she asked me.
In my experience, this conundrum is quite common. Many successful business owners struggle to figure out their pricing. And with good reason. While there is an element of science to pricing strategy, there is also a lot of art and a big dose of trial and error.
In working with hundreds of entrepreneurs, I’ve seen some consistent patterns that are cutting their business’ profitability. So today I want to share five common mistakes I see, and how to avoid or correct them.
Share Your Thoughts
What have you learned about pricing over the years? What traps have you fallen into? What will you change about your prices after reading this? I look forward to hearing your insights and “ahas” below!