How to price your product or service to increase profit margins
Channel: Robyn Graham, LLC
Date: 05/07/2022

How to price your product or service is dependent on several factors within your business, as well as your revenue goals.

Charging your worth and value

If you have a calling and aren’t acting on it you are doing a disservice to those who need your service, your help. Likewise, if you don’t charge for the service you provide, you are doing a disservice. Why? Because if people don’t pay for something, they aren’t going to be as invested in it and won’t act and do the work that will create impact.

Your knowledge, your value, and your time are worth charging for. If God is calling you to something, it is okay to charge for it. Even in the Bible people made money. The key is to use that money for good, creating a ripple effect of good in the world.

Ruth-Joy noticed that she had a passion for helping others succeed. She didn’t know exactly what she wanted to do, but she took action and trusted that eventually, she would figure it out. Her ultimate goal was to overcome financial insecurity and be a good steward of money. Using her own experience with money, growing up the daughter of immigrant parents, and her corporate background in sales and marketing, she helps her clients have the financial backbone to succeed and be their vision while having financial security.

What is corporate revenue?

Corporate revenue is working with companies who are willing to invest 5 figures or more. It is the company that is hiring you not necessarily an individual. Corporate revenue streams begin at 5 figures and go up from there. Even one of these contracts for an entrepreneur has a major impact on growing your business and allowing you to propel forward and have financial security.

Even within corporations, there are intrapreneurs. They have the expertise, but they are working on behalf of someone else. Companies want the person take ownership, to run the team or project as if it were their own.

This opens the door for entrepreneurs to work with corporations and position themselves to do that, while not having to change their business model.

How to price your product or service

Robyn emphasized creating a pricing structure that is aligned with your soulmate client. If you price based on your soulmate client and their financial resources, you may not attract them. This will result in frustration.

Confidence

We often present with fear around charging. This most often stems from a lack of confidence in our service and what we are providing versus our ideal client.

The Pillars of Pricing

Note that each pillar builds on the previous one to position your business for profitability.

Profile
Understanding who your target client is. Whether this is an individual or corporation, referred to as a profile. Understand the problem, challenge, or goal this person/company has that you can help them with.

Problem – something that is causing their business harm.
Challenge – something that they are struggling to overcome
Goal – something that they want to achieve.

This pillar is foundational for your understanding of what you are selling to the company and what they need. This is foundational for your confidence and for creating content that helps them understand how you can help them. 

Positioning
This refers to a company’s ability to influence the perspective of others and the work that they do. Another level of positioning is prestige. Prestige refers to how you influence your buyer’s perception of your business.

Proposition - Unique Value Proposition
 Process – methodology you use
 Results –outcomes you produce for your clients
 Experience – the environment you create bringing people into you and how they feel when working with you.

This answers the question of why a client should choose to work with you. Where do you put a stake in the ground to say you are the best? Which one are you excellent at?

Robyn suggested looking at testimonials you receive from past clients to determine where your excellence lies.

Profit margins
You are not just talking about numbers when talking about pricing. What is left over after bills and salaries? Make sure that there is a minimum of 30% profit margin baked into the pricing of your service. This also must consider the time you are putting into serving your clients. Can your pricing cover your needs until the volume is achieved?

Connect with Ruth-Joy Connell:

Website: https://www.rjcconsulting.com/

Podcast: https://podcasts.apple.com/us/podcast/the-profit-scale/id1499553293

LinkedIn: https://www.linkedin.com/in/ruth-joy-connell-7569ab113/

Robyn Graham
Business and Mindset Coach | Host of The Robyn Graham Show | Author of "You, Me, and Anxiety"
www.therobyngraham.com