I'm not sure where you live, but every year here in Buffalo, New York we have an "Auto Show." In essence, you can wander around our convention center looking at hundreds of cars without the pressures of a dealership showroom.  The cars are organized by brand - Mercedes in one corner, Chevy in another, Honda in another, and so on. 

I love that I can sit in cars that cost well over $100,000 - cars I would never buy, because I have other priorities for my money.  You, on the other hand, might have that luxury car right in your own garage. The last time we went to the show, my kids were shopping for cars. I sat in sports cars with my adventure-seeking son and starter SUV's with my practical daughter. You see, everyone has their own preferences and their own philosophies when it comes to purchasing and driving cars. That's why every car manufacturer and quite frankly, your business needs to have an intentional pricing strategy.

One of the most common questions I get from coaches and course creators is: How do I set my pricing? I get it. You don't want to sell yourself short, but you also don't want to price so high that you lose business.  Honestly, you can drive yourself crazy thinking about this, unless you have a solid pricing strategy.

Your pricing strategy defines the optimal price point for your product - one that your ideal client is willing to pay and one that makes you feel that you are earning what you are worth.

Your pricing strategy is made up of three parts:

1.  Your Personal Pricing Philosophy

2.  Your Pricing Structure

3.  Your Product Prices

In this post, we're focusing on #1. Your Personal Pricing Philosophy because this is the starting point. Remember, your strategy is designed to make you feel that you are earning what you are worth. I know how hard you work. You've put a lot of time into building your course or coaching program. You invest lots of time promoting your services. You put your heart and soul into delivering for your clients. If at the end of the day, you don't feel like you've been paid fairly, you will end up feeling bitter about your work, your clients, and your business. Knowing Your Personal Pricing Philosophy helps you feel at peace with the prices you set. 

Grab your tablet or notebook because we are going to write Your Personal Pricing Philosophy. This statement will guide the decisions you make in the future about pricing. So, really put some thought into this. 

Your Personal Pricing Philosophy statement describes how you want to be perceived by your clients when it comes to pricing. Are you the starter SUV (practical, affordable, dependable) or are you the sumptuous sports car (luxury, pricey, high end)?

It is a reflection of your personal values, your business brand, and what is truly important to you.

• Are you more altruistic by nature, prioritizing serving others or are you motivated by high earnings?

• Are you more of a minimalist or someone who wants to live a luxury lifestyle? 

• Do you have a strong desire to give back to your community or is your priority right now to provide for your family.

• Perhaps you are toward the latter part of your career, already have a nice nest egg saved up, and don't need high earnings right now. Or, you have six kids that you want to send to college so you need to earn a lot of money.

If you consider each of those dichotomies, where do you fall on those spectrums? Are you more toward the altruistic, minimalist ends seeking to serve others and not needing a lot of money? Or are you more toward the luxury lifestyle, seeking to focus on high earnings? Perhaps you're somewhere in between.

There's no judgement here. This is YOUR Personal Pricing Philosophy.

For me, my philosophy has always been:

• To build long-term client relationships rather than one-and-done deals. I never want to be known as the million dollar consultant that burns through clients' cash in one engagement.

• To have the freedom and financial ability for my family to learn and have fun. We've travelled and have nice things, but I already said driving that luxury car isn't for me.

• To feel like I'm treating my clients fairly while being fair to myself. My prices generally fall in the average range - I'm not the cheapest trainer in town nor am I the most expensive.

• To make sure my clients get a little bit more than I proposed as part of the original deal. That solidifies my relationship for the long-term.

These statements guide me to create a Pricing Structure and to set Product Prices that my clients embrace and allow me to sleep at night. My clients know that I don't take advantage of them and hire me over and over again. I was able to pay cash for my children to attend private high schools and colleges. We've enjoyed lots of vacations and other benefits. And, I know the value my clients receive aligns with what they pay me.

I want you to have this same sense of satisfaction and peace with every price you propose to your clients. 

In future blog posts, I'll cover Your Pricing Structure, as well as how to set Your Product Prices. If you don't want to wait for those posts, check out my B2B Fabulous course. I take a deep dive into pricing, proposals, and procurement processes.  I also share my secrets for connecting with decision makers, engaging with them in a way that inspires them to buy, delivering your programs in the B2B space, and tools for growing your business.

In the meantime, drive the car and set your pricing in a way that reflects what's important to you!