Psychology of Pricing & Undercharging: the strategies (and emotions) behind this tough decision!
This episode is all about recovering underchargers (including us), pricing psychology, and strategies to increase your prices and feel good about it.
In this episode, we talk about the psychology behind undercharging for services, programs and courses… and share insights on how to overcome the mindset that leads to low pricing.
We explore main 4 reasons why entrepreneurs and business owners tend to undercharge... and a bonus reason during the last 4 minutes of the episode that we hear ALLLLL the time.
The episode also delves into personal stories of our own success and struggle… and what we figured out about wisely making this decision along the way…
INCLUDING how you would go about even coming up with a price for what you offer.
KEY POINTS:
- **Case Study**: The episode begins with a success story of a client who used to undercharge but now earns three times more per client after changing her mindset and raising her prices. This transformation has led to increased $, less work, and higher client commitment.
- **Reasons for Undercharging**:
- Fear of rejection and criticism.
- Guilt about charging higher prices.
- A belief that high prices create high expectations, leading to more pressure.
- The desire to make services accessible to everyone, even at a cost to the business.
- **Pricing Strategy**: We explain the primary two factors that should be involved in coming up with a starting point as the price for your programs, offers or services.
- **Emotional Impact**: Undercharging can lead to burnout, low morale, and lack of confidence. The episode dives into how higher prices can increase confidence, leading to more success. BUT how to still make your help accessible to those who don’t have a lot of money.
- **Benefits of Higher Pricing**: We talk about the circumstances where it’s wise to charge more and HOW… and the great things that happen when you do.
- **Tips for Breaking the Cycle of Undercharging**: Once you realize that you have, in fact, been undercharging… what do you do? We dive into that, too.
- **Personality Traits**: We talk about how certain personality traits can lead to undercharging… and how learning these things about yourself can help you get out of your own way before it even happens.
- **Overcoming Desperation**: Desperation can lead to undercharging and negatively affect sales. We make mindset and book reading suggestions to help shift mindset and overcome challenges.
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WHO ARE THESE PEOPLE anyway?
Serial entrepreneurs, quick-starters, researchers, nerds and goofballs. This show is for business owners who love interesting conversations about how minds work.
After many years of running several high-profit multi-6-figures/year businesses (with very little team and a super tiny audience), Molly & Jason are the brains behind WhyPeopleDoStuff.com - a place for entrepreneurs to learn more about how their audience's mind works... what people want, why they buy, how they think, and how to work out your OFFERS and sales skills around those core key psychological quirks and rules.
Molly is a self-proclaimed people nerd. Mildly extroverted, bubbly, empathetic and a "genius" according to her friends and kids. She collects coffee mugs and introverts.
Jason is a critical thinking analyzer... picking apart puzzles and proudly carrying an "Extreme Introvert" label.
Their kids (Kyle, Julia and Casey) are homeschooled, taken all over the world (thanks to the online business lifestyle!) and spend an inordinate amount of time talking about psychology. Occasionally the kids will make appearances on the show as well... talking about things that they themselves have become early experts in.
The show will also have other guests on, helping all of us entrepreneurs love & understand the wonderful world of... why people do stuff.
Interested in being a guest or having us on your show? Email us at podcast@whypeopledostuff.com.
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🔗 As always, there are cool things over at whypeopledostuff.com for you to check out.
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