I set up an Independent HR Consultancy business in 2012 and one thing I discovered pretty quickly was that absolutely nothing I had done in my life before had given me the skills to put a price on what I was offering or had given me the belief that anyone would actually pay me for my knowledge.
I made all of the classic mistakes – trying to figure out what other people were charging so I could tuck myself in a bit lower than them, thinking that because I was new I had to be the cheapest, dying of embarrassment every time the subject of price came up, changing my mind every 5 minutes about what to charge, offering discounts immediately etc.
I was basically plucking numbers out of mid air hoping to magically stumble across that magical figure that would get someone, anyone, to say yes. Nothing about my approach to pricing and sales conversations suggested either competence or confidence and unsurprisingly I was largely unsuccessful.
I quickly realised that if I didn’t get to grips with this I was not going to have a business for very long at all. So I did what I always do in these situations
- I went and found the best people I could to teach me what I needed to do.
- I learned about value based pricing
- I learned how to position myself in the market and find the right clients, the ones who really wanted what I was offering and were looking for the best person to teach and support them in achieving their goals.
- I learned how to structure my pricing, what to include when deciding on a price point, how to avoid making the mistakes that put potential clients off deciding to buy and before I knew it I was teaching other people – people just like you – how to do the same thing.