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Stop Discounting Your Expertise: Why People Value What They Invest In · The Boujee Multipreneur

0:17
SPEAKER_00: Welcome back to another episode of the Bougie Multipreneur.
0:21
SPEAKER_00: I'm your host, Dr.
0:21
SPEAKER_00: Hilary Hushauer, entrepreneur, chiropractor, consultant, and someone who is passionate about helping business owners build successful businesses without giving up the life they're trying to create.
0:34
SPEAKER_00: Over the past couple episodes, we've talked about making the shift from operator to CEO.
0:39
SPEAKER_00: We talked about creating space to work on your business instead of spending every minute working in it.
0:45
SPEAKER_00: We also talked about the numbers every CEO should understand because being busy doesn't necessarily mean your business is growing.
0:54
SPEAKER_00: Today I want to talk about another important part of being a stronger CEO.
0:59
SPEAKER_00: And we are talking about money.
1:02
SPEAKER_00: More specifically, though, we're talking about pricing, value, and why so many talented business owners continue to discount their expertise.
1:12
SPEAKER_00: This is especially common among women, healthcare providers, coaches, consultants, and service-based business owners.
1:22
SPEAKER_00: It's like we want to help people so bad.
1:24
SPEAKER_00: We care about the people we serve, and we never want someone to think we only care about money.
1:31
SPEAKER_00: So we discount, right?
1:32
SPEAKER_00: Or we add extras.
1:34
SPEAKER_00: We make exceptions for the people.
1:36
SPEAKER_00: We lower the price before anyone even asks.
1:40
SPEAKER_00: We explain and defend what we charge and why we charged it.
1:45
SPEAKER_00: Sometimes I feel like we practically like apologize for saying the price out loud.
1:50
SPEAKER_00: And then we wonder why we feel so overworked, underappreciated, and frustrated.
1:57
SPEAKER_00: If this sounds familiar, this episode is for you.
2:02
SPEAKER_00: Today I want to talk about why charging appropriately is not selfish.
2:07
SPEAKER_00: It's not greedy.
2:08
SPEAKER_00: It doesn't mean you care less about the people.
2:11
SPEAKER_00: And in many cases, charging appropriately is what allows you to continue helping people at the level they deserve.
2:19
SPEAKER_00: Let's start with a question.
2:21
SPEAKER_00: Have you ever had someone ask what something costs?
2:25
SPEAKER_00: And before they even reacted, you immediately started negotiating against yourself.
2:30
SPEAKER_00: I know I have.
2:38
SPEAKER_00: Or it normally costs this much, but I could probably include this other service too.
2:44
SPEAKER_00: Or I know that might sound expensive, but did the customer or patient even object to it?
2:52
SPEAKER_00: They didn't say it was too expensive.
2:55
SPEAKER_00: They didn't say they couldn't afford it, but because you felt uncomfortable, you lowered the value before they had a chance to even decide for themselves.
3:04
SPEAKER_00: And I have seen this so many times.
3:07
SPEAKER_00: I've done it too, to be honest.
3:10
SPEAKER_00: And I used to do it for years until I really started to understand what I was worth.
3:16
SPEAKER_00: And I feel like many business owners are comfortable delivering the services to the customer, we're comfortable with solving their problem.
3:26
SPEAKER_00: We can stay late, we can answer more emails, help one more person, or give extra time.
3:32
SPEAKER_00: But then when it comes to confidently like saying the price of something, we become uncomfortable.
3:40
SPEAKER_00: So here's the first thing I want you to understand that your discomfort with the price doesn't mean the price is wrong.
3:50
SPEAKER_00: Sometimes it means you are still growing into the confidence required to charge it.
3:56
SPEAKER_00: So there's a big difference between price and value.
4:01
SPEAKER_00: Price is the number someone pays, but then value is what they receive.
4:08
SPEAKER_00: So a patient is not only paying for the 20 or 30 minutes you spend with them, or a consulting client is not only paying for the hour you spend on a Zoom call.
4:20
SPEAKER_00: A customer is not paying for that physical product that's in their hand.
4:25
SPEAKER_00: They're also paying for your education, your training, your experience, and your judgment.
4:31
SPEAKER_00: So the mistakes you've already made and learned from, all the years you spent being efficient at something that once took you much longer.
4:42
SPEAKER_00: So they're paying for the problem you can help solve.
4:45
SPEAKER_00: That's why the phrase, it only took you 15 minutes, can be misleading.
4:50
SPEAKER_00: Yes, it may have taken me 15 minutes today, but it may have taken 15 years to learn how to do it correctly in 15 minutes.
5:00
SPEAKER_00: So efficiency shouldn't decrease your value.
5:05
SPEAKER_00: And I remember this a long time ago.
5:07
SPEAKER_00: I used to trade services with the massage therapist a long, long, long time ago.
5:12
SPEAKER_00: And she would say, Well, I give you an hour massage, and your adjustments are only like 15 minutes.
5:18
SPEAKER_00: So I feel like I should get four adjustments for one massage.
5:23
SPEAKER_00: And I was like, no, I'm worth more than you, though.
5:26
SPEAKER_00: I'm worth more per 15 minutes or per hour than you are.
5:30
SPEAKER_00: And so she just couldn't wrap her her brain around that because in her mind, it was all about the the time frame.
5:38
SPEAKER_00: Um, needless to say, that relationship of trading services did not last.
5:44
SPEAKER_00: Um, but in many cases, like the efficiency is what people are looking for in our expertise.
5:51
SPEAKER_00: And then we might punish ourselves for becoming good at what we do.
5:55
SPEAKER_00: But when something feels easy to us, we assume it should be inexpensive.
6:02
SPEAKER_00: But it feels easy because we have experience.
6:06
SPEAKER_00: So think about something you do extremely well.
6:10
SPEAKER_00: You may be able to look at this situation and quickly recognize the issue.
6:15
SPEAKER_00: Although someone newer in the profession might need hours to research and reach the same conclusion that you did.
6:22
SPEAKER_00: So your ability to see the answer faster is not a reason to charge less.
6:30
SPEAKER_00: I think that is very powerful.
6:33
SPEAKER_00: And I sometimes struggle with that with my business coaching, that my price, right, of how I feel I should charge per hour is not cheap, but because I've been there and done that and still doing it, I charge for my efficiency and my knowledge, right?
6:55
SPEAKER_00: So um one of the reasons that we charge this is because our expertise is valuable, right?
7:03
SPEAKER_00: There's value in what we know, make, etc.
7:07
SPEAKER_00: Another reason business owners underprice things is because they confuse being affordable with being accessible.
7:14
SPEAKER_00: So those are not always the same thing.
7:16
SPEAKER_00: You can be generous without giving away everything.
7:20
SPEAKER_00: You can create payment options, you could occasionally offer like a scholarship, you could donate services intentionally, you could support community organizations, you could also maybe create a lower cost entry point to you.
7:39
SPEAKER_00: And you could share free education, but there's a difference between intentional generosity and constant discounting.
7:48
SPEAKER_00: So intentional generosity feels good, right?
7:51
SPEAKER_00: It's planned, it fits within your business, your budget, and it has a purpose.
7:56
SPEAKER_00: But constantly a discounting often comes from fear.
8:01
SPEAKER_00: Fear that someone will say no, fear that someone will judge us, or feel fear that someone will go somewhere else, right?
8:08
SPEAKER_00: Fear that we're not worth what we are charging.
8:12
SPEAKER_00: But these are not price strategies, these are just emotional reactions.
8:17
SPEAKER_00: And emotional pricing makes it difficult to build a stable business.
8:22
SPEAKER_00: So, I mean, I want to be clear about something that not every person is your customer either, right?
8:27
SPEAKER_00: That doesn't mean there's anything wrong with them.
8:29
SPEAKER_00: It doesn't also mean there's nothing wrong with you.
8:31
SPEAKER_00: Just people have different priorities, they have different budgets and different ideas about value.
8:37
SPEAKER_00: Someone can generally appreciate you and still decide that your service is not a fit for them.
8:43
SPEAKER_00: And that's okay.
8:45
SPEAKER_00: I know in my chiropractic office, I am not the cheapest in the area.
8:50
SPEAKER_00: I don't accept nearly any insurance.
8:54
SPEAKER_00: And that's okay if not everyone can see Dr.
8:57
SPEAKER_00: Hillary at Rangeline Chiropractic.
9:00
SPEAKER_00: That's what I value my time for someone that values my time and expertise and is willing to pay the full price.
9:10
SPEAKER_00: So when we lower our prices, people hesitate, right?
9:16
SPEAKER_00: And we allow the wrong customers to determine the value of our entire business.
9:22
SPEAKER_00: And I've definitely done this before when I started my business.
9:25
SPEAKER_00: I would give so many discounts or things free or an add-on, right?
9:29
SPEAKER_00: Um, fear.
9:31
SPEAKER_00: Deep down that emotion is fear.
9:34
SPEAKER_00: Um, it's dangerous because your pricing not only affects you, but affects your employees, it affects your customer experience, your equipment, your marketing.
9:45
SPEAKER_00: If I don't charge the right prices, I can't have employees or I can't pay the employees what they're worth.
9:53
SPEAKER_00: Like I enjoy giving them bonuses and giving them raises.
9:56
SPEAKER_00: I enjoy that they're at the top pay level.
10:00
SPEAKER_00: You know, I enjoy that my customers get like a five-star experience, or sometimes I like to call it like the Ritz Carlton of uh chiropractic.
10:10
SPEAKER_00: You know, I want them to have that experience if that's what they're looking for.
10:14
SPEAKER_00: And if they're looking for a cheap, quick option, then there's definitely other places to do that.
10:20
SPEAKER_00: But that's not my model and my goal.
10:23
SPEAKER_00: And as far as like the equipment, can you imagine if I had like really shabby equipment and ripped tables and the office smelled bad and there's old carpet and like wood paneling?
10:36
SPEAKER_00: I don't know.
10:37
SPEAKER_00: It's just that's not the experience I want to give my patients.
10:41
SPEAKER_00: And so my equipment and the marketing, I mean, think about all the things that I would have to cut back on to give people the price that they may think they want, but they don't want that.
10:54
SPEAKER_00: Um, what about the ability to maintain like your building, whether you own your own?
11:00
SPEAKER_00: I I own my own chiropractic building, but what if you you lease and you rent and you can't keep up with it or you can't continue your education to learn more about your profession?
11:11
SPEAKER_00: You know, what if you can't offer benefits to people?
11:17
SPEAKER_00: I don't know, I mean anyone really.
11:19
SPEAKER_00: Um, and it may affect like your ability to reward your team.
11:23
SPEAKER_00: And I think sometimes you really have to think about it's not just you.
11:27
SPEAKER_00: Um it is your the people that you are also paying.
11:31
SPEAKER_00: It's their livelihood too.
11:32
SPEAKER_00: So don't let your own fear affect someone else.
11:35
SPEAKER_00: Like that's not fair to them.
11:37
SPEAKER_00: I know that when I had my first child, that's when things really turned around for me.
11:41
SPEAKER_00: And I was like, oh, I have someone else to support now that like needs me.
11:46
SPEAKER_00: I can't be giving away everything.
11:48
SPEAKER_00: Like, this is for her.
11:49
SPEAKER_00: Like, she needs to eat.
11:51
SPEAKER_00: Um, your price will fund the experience that you want to provide for them.
11:59
SPEAKER_00: If you want to hire the talented people and compensate them well, then that requires revenue, right?
12:06
SPEAKER_00: You want your employees to stay, to grow, to feel valued.
12:09
SPEAKER_00: It requires more revenue.
12:11
SPEAKER_00: You want updated technology, quality supplies, like a beautiful space, excellent customer service.
12:19
SPEAKER_00: That all requires revenue.
12:22
SPEAKER_00: And if you want enough support where you're not exhausted every day, that requires revenue too.
12:27
SPEAKER_00: So charging appropriately, in my opinion, is not about putting more money in your own pocket.
12:33
SPEAKER_00: It's about creating a healthy business.
12:35
SPEAKER_00: And then a healthy business can serve people longer and better versus an exhausted business barely surviving.
12:45
SPEAKER_00: I also believe that people often value what they invest in.
12:49
SPEAKER_00: And it doesn't mean the most expensive option is automatically the best, but it means the investment can create commitment.
12:58
SPEAKER_00: So think about something that you received for free and something you've intentionally chosen to purchase, which went better for you.
13:08
SPEAKER_00: I always think about this like um I always pay for like a personal trainer.
13:17
SPEAKER_00: And do I know what to do after all these years?
13:20
SPEAKER_00: I mean, I'm in my mid-40s now.
13:22
SPEAKER_00: Do you think I know how to exercise?
13:24
SPEAKER_00: Yes.
13:25
SPEAKER_00: Do you think that I do it consistently?
13:28
SPEAKER_00: No.
13:29
SPEAKER_00: So I could ask people to give me and write me programs for free.
13:35
SPEAKER_00: I could look up things online for free, honestly.
13:38
SPEAKER_00: But when I pay for it, I will be there and I will do the work.
13:43
SPEAKER_00: So oftentimes, if someone says, like, oh, I'll give you free this or that, and you know, I just I just value you, Hillary.
13:51
SPEAKER_00: I'm like, no, I want to pay because paying in my mind equates a service that I need and want.
14:00
SPEAKER_00: And I'm always happy to pay because I always get better outcomes personally.
14:05
SPEAKER_00: But when, for instance, patients pay versus not paying, um, they show up, they participate more in their care plan, they follow through, they ask better questions, and then they take the process more seriously.
14:23
SPEAKER_00: So I know if you are in healthcare or coaching or fitness education, this client that you serve has a role in the outcome.
14:34
SPEAKER_00: So you can't do everything for them.
14:37
SPEAKER_00: They have to engage, they have to follow the recommendations, they have to participate in the process.
14:44
SPEAKER_00: So when people invest in themselves, it increases the participation.
14:49
SPEAKER_00: And like I said, like I see that in myself all the time.
14:51
SPEAKER_00: And I'm always like, no, no, I'll just pay.
14:54
SPEAKER_00: Like, I need to do it.
14:56
SPEAKER_00: So again, charging, you know, doesn't mean that you have to be the highest in your market.
15:04
SPEAKER_00: And maybe you should also assume or stop assuming what the lowest price is that serves them best.
15:10
SPEAKER_00: Because sometimes a low price can create confusion.
15:14
SPEAKER_00: People wonder why is it so inexpensive?
15:18
SPEAKER_00: Is the service like lower quality?
15:22
SPEAKER_00: Is the provider inexperienced?
15:24
SPEAKER_00: Are they new?
15:25
SPEAKER_00: What's missing?
15:27
SPEAKER_00: Price communicates something, it creates an expectation, if you will.
15:33
SPEAKER_00: That's why your price and your experience need to match.
15:37
SPEAKER_00: Have you ever been to, I know, ladies, you've been to salons where you've seen a stylist, and there sometimes are like three levels, like a new stylist, an intermediate, and then the experienced ones are always more costly, right?
15:53
SPEAKER_00: Because their price reflects their experience.
15:56
SPEAKER_00: And it should, because what if you went to get your hair cut and colored by someone that was fresh out yesterday versus someone that's been doing it for 20 years and they charge the same price?
16:08
SPEAKER_00: Yes, maybe they could do the same thing, but a lot of us pay for that experience because we don't want anything ruined, right?
16:18
SPEAKER_00: Um, so if you want to charge the premium price though, I think that you should create the premium experience.
16:26
SPEAKER_00: So it doesn't mean that it has to be super luxurious or extravagant, but premium could be more thoughtful.
16:34
SPEAKER_00: It could be like clear communication, it's easier to schedule, it's a professional environment.
16:41
SPEAKER_00: You start on time, you remember all the details, and you follow up.
16:46
SPEAKER_00: You do what you say you're going to do.
16:48
SPEAKER_00: You make the people feel seen and you create consistency.
16:53
SPEAKER_00: So a premium experience is not only like the chandeliers and the beautiful furniture, expensive packaging.
17:00
SPEAKER_00: It's how someone feels that every step of interacting with you and your business, when your experience can support your price, you don't need to constantly defend it.
17:12
SPEAKER_00: The client can feel the difference.
17:16
SPEAKER_00: One thing that I think of with this is like high-end spas that I go to.
17:21
SPEAKER_00: Could I go get a massage at a local place where I'm laying an open bay clothes on for$45?
17:31
SPEAKER_00: Yes, I could.
17:32
SPEAKER_00: Or could I pay$245 at the most luxurious spa in the area and have the steam and the smells and the comfy blankets and the extra time in the lounge area and a comfy robe and slippers and oils and sounds.
17:54
SPEAKER_00: And I mean, if that's the experience you want, then you'll pay for that, right?
17:59
SPEAKER_00: It doesn't have to be the cheapest.
18:01
SPEAKER_00: I wouldn't go into a spa and be like, I can get this massage down the road at this one place for$45 for 60 minutes.
18:08
SPEAKER_00: Like, no, then go there, they would tell me, right?
18:11
SPEAKER_00: Um, it you you have to start with um the confidence in knowing the price before you even state it.
18:20
SPEAKER_00: You know, it begins with knowing what you offer, who it's for, what the problem solves, and then how is your experience different?
18:31
SPEAKER_00: You know, what does the person receive?
18:34
SPEAKER_00: And then what does the expected process look like?
18:37
SPEAKER_00: So if you're unclear about your whole value, you're then your customer is going to be unclear too.
18:43
SPEAKER_00: And then that's where business owners make the mistake.
18:46
SPEAKER_00: They might just increase the price without improving the communication or experience.
18:51
SPEAKER_00: Like you can't just go from a$45 an hour massage to say now it's$245, but if they get the same kind of shitty experience, right?
19:01
SPEAKER_00: No.
19:02
SPEAKER_00: Um, you need to like deliver and communicate what that is.
19:08
SPEAKER_00: So uh you should not have to defend your right and be all nervous about a speech about why you charge this and that for your work.
19:17
SPEAKER_00: Just state the price, explain what's included, and then stop.
19:21
SPEAKER_00: Give the other person time to process and decide.
19:25
SPEAKER_00: Silence is uncomfortable, especially when you're used to filling it with like a discount saying, but but but we could do this or or or you know, practice just allowing the silence.
19:37
SPEAKER_00: So instead of saying the program is$500, and I know it's a lot, but maybe we could break it up or I could remove part of it, or I could give you a discount, right?
19:49
SPEAKER_00: You could say the investment for the program is$500.
19:53
SPEAKER_00: This includes the initial consultation, your personalized plan to follow-up appointments, and access to support between visits.
20:02
SPEAKER_00: Then you pause.
20:12
SPEAKER_00: Confidence isn't being pushy, it's not being salesy, right?
20:16
SPEAKER_00: It means presenting the information to them and not apologizing.
20:21
SPEAKER_00: Also look about how often maybe you give away additions that were never included in the original service.
20:28
SPEAKER_00: Like let's say you're a chiropractor and you do, well, I'll just add on this service.
20:34
SPEAKER_00: It's an extra five to eight minutes.
20:36
SPEAKER_00: Well, they're gonna expect that every time, right?
20:40
SPEAKER_00: Or you're a coach and you're like, well, I'll just offer you an extra phone call or extra time, you know, just a quick favor for this or that.
20:47
SPEAKER_00: And all these little things may seem small, but then they're they add up.
20:52
SPEAKER_00: Remember, your time is money.
20:54
SPEAKER_00: And some people do that, they they creep in and they take up that time.
20:59
SPEAKER_00: And then all of a sudden your service time is longer, but thus price stays the same.
21:04
SPEAKER_00: And then the resentment begins.
21:07
SPEAKER_00: I was talking to a friend the other day who employs someone that gives away free services, and now other people expect it.
21:16
SPEAKER_00: But see, that other provider started that out, and now it's not just one person they give a free service to here and there, it's all of them, and they only want to see that one provider because they get all those free things with it.
21:31
SPEAKER_00: So it's not fair to anyone, it's not fair to the clients and the other clients not getting it.
21:36
SPEAKER_00: It's not fair that you're missing out on money because you refuse to charge that.
21:41
SPEAKER_00: Um, you should just clearly define what is included, what's not included, and what additional support might cost.
21:51
SPEAKER_00: So, chiropractors, if you're listening, it might be something as oh, I do just a little bit of trigger point therapy and massage and cranial massage afterwards.
22:03
SPEAKER_00: Great, charge for that because that wasn't part of the adjustment, you know.
22:08
SPEAKER_00: So, boundaries is another word to call it right.
22:12
SPEAKER_00: You know, the boundaries that we set can help protect.
22:15
SPEAKER_00: The relationship with our patients, with our team, our staff, and they prevent confusion.
22:21
SPEAKER_00: So boundaries could help you show up generously without feeling like you're being taken advantage of.
22:30
SPEAKER_00: And I know we've all felt that way.
22:32
SPEAKER_00: And that's why I bring that up.
22:33
SPEAKER_00: It's really common.
22:34
SPEAKER_00: I hear it all the time with my um friends, with who I work with, with my coaching clients.
22:40
SPEAKER_00: So what can we do, right?
22:43
SPEAKER_00: Make a promotion.
22:44
SPEAKER_00: That could be really effective.
22:46
SPEAKER_00: It could encourage someone to try something new, or it could create an urgency.
22:52
SPEAKER_00: You could do like a launch of something, or you could reward loyal clients and patients.
22:58
SPEAKER_00: But every promotion should have a reason, a beginning, and an end.
23:03
SPEAKER_00: A permanent sale is not a promotion.
23:06
SPEAKER_00: A you know, something you give away every day is not a promotion.
23:11
SPEAKER_00: It's the actual price.
23:13
SPEAKER_00: So if you're constantly discounting, people might just learn to wait.
23:17
SPEAKER_00: Well, I'll just do that next time in case you want to give that to me for free, or I'll just wait because you always every other month you have it go on sale.
23:25
SPEAKER_00: Okay, I get it, but you're training them to wait in that.
23:29
SPEAKER_00: You're training them to value your discount more than your service.
23:33
SPEAKER_00: So I'm totally not against promotions and I use them in my business all the time, but you want them to be strategic.
23:40
SPEAKER_00: Again, I like that it has a beginning and an end.
23:44
SPEAKER_00: And a discount, in my opinion, shouldn't be the only reason someone chooses your business.
23:49
SPEAKER_00: Yes, in the chiropractic world, we often do uh a discounted maybe first exam or something, but that's just to get them through the door.
23:59
SPEAKER_00: The next part is to continue your value and so that they see that you are worth it, you know, that they've trusted you now and they understand the value of everything and they believe the experience that you've given them is worth the investment.
24:16
SPEAKER_00: So I feel like the hardest part of pricing is recognizing that your business is allowed to be profitable.
24:25
SPEAKER_00: Profit, excuse me, profit, uh, profit is not a dirty word.
24:30
SPEAKER_00: You know, it's not bad.
24:32
SPEAKER_00: It profit allows us to survive.
24:35
SPEAKER_00: It profit allows us to invest our money into things, invest our money into people.
24:40
SPEAKER_00: It allows us to improve individually, improve our processes, hire support, pay them more, you know, and it profit allows us to be generous without putting the business at risk.
24:52
SPEAKER_00: Having extra profit might mean that I support a local team or I donate to a local non-for-profit.
25:02
SPEAKER_00: But when we have profit, it allows us to make decisions from a place of stability instead of desperation.
25:12
SPEAKER_00: So, like when a business owner feels guilty about profit, they create a business that looks successful from the outside, but financially it's fragile on the inside, right?
25:24
SPEAKER_00: Um, so we've seen those flashy people, and then you look at their business numbers and you're like, you should not be doing XYZ at all.
25:33
SPEAKER_00: I mean, revenue looks impressive.
25:36
SPEAKER_00: Um, a full calendar can look impressive in a large team.
25:39
SPEAKER_00: Oh, look at how many staff they have there.
25:42
SPEAKER_00: It can look impressive.
25:44
SPEAKER_00: But if there's no profit at the end, then the business itself is vulnerable.
25:48
SPEAKER_00: You're not doing anyone a favor by creating a business that can't sustain itself.
25:54
SPEAKER_00: It doesn't help your clients, your employees, your own family, and definitely not yourself.
25:59
SPEAKER_00: So how do you know whether you're underpricing yourself?
26:04
SPEAKER_00: Look at the numbers.
26:05
SPEAKER_00: It always goes back to the numbers, right?
26:07
SPEAKER_00: What does it cost to deliver the service?
26:10
SPEAKER_00: So think of the labor, the supplies, the processing fees, especially credit cards lately, the software.
26:17
SPEAKER_00: That's also expensive.
26:18
SPEAKER_00: What about your rent and your marketing?
26:20
SPEAKER_00: What about your administrative time?
26:22
SPEAKER_00: And then don't forget about the lovely taxes that we pay on nearly everything.
26:27
SPEAKER_00: And then what about the follow-up time used?
26:30
SPEAKER_00: The continuing age, excuse me, continuing like the education that we had to get so we could then offer this service.
26:37
SPEAKER_00: And your own time.
26:39
SPEAKER_00: Time is money, you know.
26:41
SPEAKER_00: Many people choose a price based on what a competitor charges without understanding, hey, that may or may not work for my business, though.
26:49
SPEAKER_00: Like your competitor might have different expenses than you and a totally different business model and maybe a different level of experience or service.
27:00
SPEAKER_00: Or, hey, they might also be underpricing and undervaluing themselves, right?
27:05
SPEAKER_00: So don't build your price based on what's around you or someone else's numbers.
27:11
SPEAKER_00: Know your numbers.
27:12
SPEAKER_00: Look at the demand.
27:13
SPEAKER_00: You know, you've fully booked, but you're still struggling financially.
27:17
SPEAKER_00: That is a good sign that your price is too low or the expenses are too high or the service model needs to change.
27:24
SPEAKER_00: This is something I look at with my coaching clients because it's nice to see when like a step away from the business, what it looks like.
27:33
SPEAKER_00: And so someone that maybe isn't tied, you know, emotionally to the business can look at it and help you understand what the next step is.
27:41
SPEAKER_00: It's literally what I do all the time.
27:43
SPEAKER_00: So, hey, reach out to me if you need help.
27:46
SPEAKER_00: But um, are you constantly exhausted because each service includes like too much unpaid time?
27:55
SPEAKER_00: Um, that might be a pricing or a boundary issue.
27:59
SPEAKER_00: And that again is something that you know a coach can help with.
28:04
SPEAKER_00: Are you losing money on a service that appears popular?
28:08
SPEAKER_00: So popularity doesn't automatically mean profitability.
28:15
SPEAKER_00: So that's hard, right?
28:16
SPEAKER_00: Popularity doesn't automatically equal profitability.
28:20
SPEAKER_00: So are your prices the same as they were years ago, even though every expense has increased?
28:27
SPEAKER_00: It's worth reviewing.
28:29
SPEAKER_00: And remember in like 2020, 21, 22, how everything increased, like just literally like disinfectants.
28:37
SPEAKER_00: I know, especially for my office and gloves.
28:41
SPEAKER_00: Well, we had to increase profits, we could increase like prices.
28:45
SPEAKER_00: We could not sustain that.
28:47
SPEAKER_00: I couldn't sustain to keep all my staff at the prices in the overhead.
28:52
SPEAKER_00: So review that.
29:01
SPEAKER_00: But you need to review it intentionally and you know, often.
29:06
SPEAKER_00: So something you might ask is, would you recommend this business model to someone you love?
29:12
SPEAKER_00: If your child was starting a business, would you tell them to start it and to do it the way you're doing yours?
29:21
SPEAKER_00: If not, I think that's a big, you know, clue for you.
29:25
SPEAKER_00: Um, sometimes we accept conditions for ourselves that we wouldn't remember, like recommend to another person, especially someone we loved.
29:33
SPEAKER_00: Um, but I feel like you deserve the same objectivity that you would give someone else, family member, friend.
29:42
SPEAKER_00: And you also want to speak directly to anyone who thinks, but helping people is my calling.
29:49
SPEAKER_00: I understand.
29:50
SPEAKER_00: I feel that way too about what I do, but my calling shouldn't require me to, you know, constantly abandon myself and put me and my family in hard times.
30:01
SPEAKER_00: You can be compassionate and profitable.
30:04
SPEAKER_00: It's not either or.
30:06
SPEAKER_00: You can care about people and charge appropriately.
30:09
SPEAKER_00: You can make an impact and create wealth.
30:13
SPEAKER_00: So these ideas are not like opposites, they're not like mutually exclusive, but money can support your mission.
30:20
SPEAKER_00: Money can employ people, it can fund community programs, it can give back, right?
30:26
SPEAKER_00: Money can give you like the time and resources to serve at a larger level.
30:31
SPEAKER_00: So the question I would say isn't whether your business has enough resources to continue to fill the purpose.
30:39
SPEAKER_00: There will always be someone who thinks your price is too high.
30:43
SPEAKER_00: There will also be someone who thinks your price is completely reasonable.
30:48
SPEAKER_00: So you can't build your entire business around avoiding criticism or not making every single person happy.
30:55
SPEAKER_00: You know, you can't convince everyone.
30:58
SPEAKER_00: The goal would be to clearly serve the right people for you.
31:02
SPEAKER_00: So uh here would be my challenge for you this week.
31:05
SPEAKER_00: Look at your service, your package, or your product, and ask yourself: is it intentionally priced?
31:12
SPEAKER_00: Do I have a clear understanding of what it costs me to provide it?
31:16
SPEAKER_00: Does the price reflect the value and experience?
31:21
SPEAKER_00: Am I including the unpaid extras that should be addressed?
31:25
SPEAKER_00: Am I discounting strategically or emotionally?
31:29
SPEAKER_00: And finally, can I state the price without apologizing, right?
31:35
SPEAKER_00: Can you verbalize the price to someone, pause and wait for the response without trying to discount or explain yourself?
31:44
SPEAKER_00: So as we close today, I just want to leave you with this that remember, you are not charging for a few minutes of your time.
31:54
SPEAKER_00: You are charging for your expertise, the preparation, the responsibility, the experience, and the results you bring to those minutes.
32:05
SPEAKER_00: You don't have to be the least expensive option to be a caring person.
32:10
SPEAKER_00: You do not have to say yes to every discount to be generous.
32:16
SPEAKER_00: You do not have to apologize for building a profitable business.
32:21
SPEAKER_00: In fact, the right price allows you to serve well, it allows you to lead well, to compensate your employees well, and to continue to do the meaningful work that you want to do.
32:34
SPEAKER_00: So stop discounting your expertise before anyone has even the opportunity to value it.
32:41
SPEAKER_00: You know, present the offer, communicate the value, state the price, and allow them to make their own decision.
32:49
SPEAKER_00: Thanks for spending time with me today.
32:51
SPEAKER_00: If this episode reminded you of another entrepreneur who is constantly, you know, undervaluing what they do, share it.
32:59
SPEAKER_00: Subscribe to the Bougie Multipreneur when you listen to podcasts.
33:02
SPEAKER_00: That would be helpful.
33:04
SPEAKER_00: Leave a review if you can.
33:06
SPEAKER_00: You know, let me know what you liked or if it resonated with you.
33:09
SPEAKER_00: Uh, remember, success is not about doing more, it's about becoming more intentional.
33:15
SPEAKER_00: So keep building the business and the life that you have been called to create.
33:21
SPEAKER_00: I'm Dr.
33:22
SPEAKER_00: Hillary, and this has been the Bougie Multipreneur.
33:25
SPEAKER_00: Talk to you next time.