Name Your Price

Recently, I was waiting to pick up an order at Absolutely Phenomenal Video (how's that for a brilliant company name?) when I overheard a new customer ask about pricing. The owner's response was swift and confident:

"To take the camera out of the bag," he said, "is $675. Editing after that is $150 an hour."

To the uninitiated those may sound like big numbers, but the conviction of the owner's delivery left no room for skepticism. After a brief exchange, the customer began making arrangements to have "Abso Phen" produce a promotional video for her.

Unfortunately, you are less likely to encounter such self-assuredness among all small business owners. Entrepreneurs, particularly women, often have difficulty naming their price. When a potential client asks how much their product or service costs, they may hesitate, appear uncertain, or begin negotiating before an amount is even mentioned. All of which does little to inspire confidence and can diminish an opportunity to pick up new business.

Bear in mind that the price you arrive at is not cast in stone. Over time, your costs will change and you can adjust your price accordingly. You may also want to offer potential clients the opportunity to receive your service at a reduced rate. For example, a professional organizer I know is planning a "Sizzling Summer Special" campaign to boost her business at a seasonably slow time of year. Both she and a handful of prospects will benefit.

One reason people get fuzzy discussing fees is that they're not totally convinced by their own numbers. You need to be very clear about what your product is worth before you can sell it to others. This means doing some homework.

Lastly, being able to name your price as though you've said it a thousand times sends a message of professionalism; it sets you apart from the novices and inspires confidence. At a critical moment in a client's decision-making process, your presentation needs to be powerful. Here's how:

•  Do your research. Consider the competition and if your price is higher be clear about why.
•  Don't undersell yourself. You're committing your resources and a lot of hard work; make sure your price reflects that investment as well as your overhead costs.
•  Leave room for special offers and introductory rates.
•  Develop a succinct way of naming your price and practice it until it trips off your tongue.

Name your price with conviction, so your customers can accept it with confidence.