Latest / She's On The Money / Back Yourself, Set Your Prices...& Raise Them!

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Back Yourself, Set Your Prices...& Raise Them! · She's On The Money

0:00
Speaker 1: Hello.
0:01
Speaker 2: My name's Santasha Nabananga Bamblet. I'm a proud yr the
0:05
Speaker 2: Order Kerni Whoalbury and a waddery woman. And before we
0:08
Speaker 2: get started on She's on the Money podcast, I would
0:11
Speaker 2: like to acknowledge the traditional custodians of the land of
0:14
Speaker 2: which this podcast is recorded on a wondery country, acknowledging
0:18
Speaker 2: the elders, the ancestors and the next generation coming through.
0:23
Speaker 2: As this podcast is about connecting, empowering, knowledge sharing and
0:27
Speaker 2: the storytelling of you to make a difference for today
0:31
Speaker 2: and lasting impact for tomorrow.
0:33
Speaker 1: Let's get into it. She's on the Money, She's on
0:37
Speaker 1: the Money. Hello, my friends, and welcome that to another episode.
1:01
Speaker 1: If you've been thinking of starting a side hustle or
1:03
Speaker 1: a small business, my friend, you are definitely in the
1:06
Speaker 1: right place. I'm Victoria Devine. I'm an ex financial advisor
1:10
Speaker 1: who has a background in psychology and I currently run
1:14
Speaker 1: several successful businesses. As always on my Business Bible episodes,
1:18
Speaker 1: I am joined by Miss Jess Grici, who was one
1:20
Speaker 1: of my beautiful friends but also one of the hardest
1:23
Speaker 1: working side hustlers. I know, Jess, how are you?
1:27
Speaker 3: I'm good, I'm pumped. I've got my Stanley. I'm ready
1:30
Speaker 3: to dive into the episode because it's one that I'm
1:34
Speaker 3: super passionate about. I've been loving doing all the Business
1:37
Speaker 3: Bible episodes, and based on the feedback that we're getting
1:40
Speaker 3: in our dms, Hello, we see you, thank you, So
1:42
Speaker 3: you guys, which is exactly what's my friend, I'm yeah.
1:45
Speaker 1: Social validation, Yeah, we love it. We'll talk about imposter
1:49
Speaker 1: syndrome later, but that has been really helping mine. I'm
1:53
Speaker 1: obviously very passionate about backing yourself. I'm really passionate about
1:57
Speaker 1: knowing your worth and then adding tax how many times?
2:00
Speaker 1: And she's on the money. Have you heard me say that?
2:02
Speaker 1: But today on the show, we are talking about the
2:05
Speaker 1: mysteries of pricing, how to set your prices, when to
2:08
Speaker 1: increase them, and most importantly, how to back yourself in
2:11
Speaker 1: the world of business, which is something that I feel
2:14
Speaker 1: like I'm constantly ranting and raving about when I meet
2:17
Speaker 1: small business owners in the wild. I'm like, so pricing,
2:19
Speaker 1: let's talk about it. Yeah, it's a little bit of
2:21
Speaker 1: a spicy topic, but we need to be across it.
2:24
Speaker 1: It makes you uncomfortable, I know, but that's why we
2:27
Speaker 1: need to dive further into it.
2:28
Speaker 3: Yes, it's so essential as small business owners that we
2:32
Speaker 3: back ourselves. Can you tell us Phebe why it is
2:35
Speaker 3: so important for someone to back themselves in the business world.
2:38
Speaker 1: Look, obviously you've got to back yourself, Like, there is
2:42
Speaker 1: nobody who's going to be able to back you as
2:44
Speaker 1: much as you can. I mean, there maybe are people
2:47
Speaker 1: who are passionate about she's on the money, right, but like,
2:50
Speaker 1: there is not going to be one person in this
2:52
Speaker 1: entire universe who cares more about she's on the money
2:54
Speaker 1: than me. Yeah, and you need to be able to
2:56
Speaker 1: validate that and back that, and if you can't be
2:58
Speaker 1: that person, is detrimental to your business. So the reality is,
3:03
Speaker 1: if you don't believe in yourself and your value, how
3:05
Speaker 1: on earth are you going to expect others to confidence?
3:09
Speaker 1: And having the confidence in your pricing is directly linked
3:12
Speaker 1: to I guess confidence in your worth as a human
3:15
Speaker 1: being as well, which it shouldn't be. But how many
3:17
Speaker 1: times do we go, oh, I only charge or oh
3:20
Speaker 1: don't worry, like we really undermine our own value, which
3:23
Speaker 1: to me is toxic. It's not just about the numbers,
3:26
Speaker 1: it's about knowing the value you bring to the table
3:29
Speaker 1: and being able to clearly articulate that.
3:31
Speaker 3: Yeah, I completely agree. So let's not start with the
3:34
Speaker 3: confidence piece. We can touch on that that we've spoken
3:36
Speaker 3: about it before, and you can go back and listen
3:38
Speaker 3: to those episodes. Let's start with some actual strategies, because
3:41
Speaker 3: more often than not, when I get a framework to
3:44
Speaker 3: build on, I feel like I'm a bit more confident
3:47
Speaker 3: in kind of following through on that. So let's talk
3:50
Speaker 3: about pricing strategies specifically. What are some of the popular
3:53
Speaker 3: ones that small business owners should maybe look into.
3:56
Speaker 1: Sit down with a notepad and paper. I have three
3:59
Speaker 1: that I want to go through. There are obviously up
4:01
Speaker 1: lethora of different pricing strategies out there, but I have
4:04
Speaker 1: picked these ones because I feel like they hit the
4:07
Speaker 1: nail on the head for our community in terms of
4:10
Speaker 1: like starting the conversation, starting your mind thinking, there's obviously
4:13
Speaker 1: way more go do some research, but here is, you know,
4:17
Speaker 1: biasly a very good start point. Jess love it. So
4:20
Speaker 1: the first one we're going to talk about is cost
4:22
Speaker 1: plus pricing. So you're calculating your costs and then you're
4:25
Speaker 1: just adding a markup. Then there's going to be value
4:27
Speaker 1: based pricing, where you set your prices based on the
4:30
Speaker 1: perceived value of your product or service. And then we
4:33
Speaker 1: can't forget about competitive pricing, and that's where you analyze
4:36
Speaker 1: your competitors and you then charge and position yourself accordingly.
4:40
Speaker 1: So I feel like I've picked three very different strategies
4:43
Speaker 1: to talk about because hopefully one of them fits with you,
4:46
Speaker 1: and I feel like in our business, Jess, we kind
4:48
Speaker 1: of do a mix of all three, like there's no perfect,
4:51
Speaker 1: one size fits all approach, and I think it's very
4:54
Speaker 1: important to me to be clear about that at the start,
4:56
Speaker 1: because I think sometimes we think, oh, there's frameworks, We've
4:59
Speaker 1: got to lock our into one of them. Absolutely not.
5:02
Speaker 1: Different products inside a business might be charged differently. So
5:06
Speaker 1: for example, Jess, you and I we work together very
5:09
Speaker 1: closely on the shoes on the Mayde podcast that is
5:12
Speaker 1: sold differently to our courses or our books. So I
5:16
Speaker 1: think it's important to put that there first. Up back
5:19
Speaker 1: to the start, we're going to talk about cost plus pricing.
5:22
Speaker 1: So this is a relatively straightforward method where you calculate
5:25
Speaker 1: the cost of producing your product or service and then
5:28
Speaker 1: you just add a markup and determine what the selling
5:30
Speaker 1: price is going to be. It ensures that you cover
5:33
Speaker 1: your expenses and also generate a profit. It's a pretty
5:37
Speaker 1: solid foundation, let's be honest, especially for businesses who are
5:40
Speaker 1: starting out, But do keep in mind it might not
5:42
Speaker 1: actually capture the full value that you are providing. Talking
5:47
Speaker 1: about value, we have value based pricing. This strategy actually
5:51
Speaker 1: revolves around the perceived value of your product or service
5:54
Speaker 1: in the eyes of your customer, not you. In the
5:57
Speaker 1: eyes of your customer. It's not solely based on the
6:00
Speaker 1: production costs, but rather on the benefit and the solution
6:03
Speaker 1: that you're bringing to your clients. So think about the
6:06
Speaker 1: problem that you're solving and then the unique value that
6:09
Speaker 1: you offer. Then what I want you to do is
6:12
Speaker 1: set your prices accordingly. This approach can actually lead to
6:15
Speaker 1: higher profit margins if your customer recognizes and appreciates the
6:19
Speaker 1: value that you provide. And I think this is one
6:22
Speaker 1: where that's a bit harder to wrap your head around,
6:24
Speaker 1: because if you're lacking a bit of confidence in business
6:27
Speaker 1: and you need me to come and like boot you
6:29
Speaker 1: up the bottom so that you actually go, oh, you're right, Victoria,
6:32
Speaker 1: I am really valuable. I do actually have a lot
6:34
Speaker 1: to offer, which you do that. One can be hard
6:37
Speaker 1: to wrap your head around if you don't have the
6:39
Speaker 1: confidence because your value based pricing like, oh, maybe it's
6:42
Speaker 1: not worth anything. V what are you talking about?
6:43
Speaker 3: It feels like you're pulling a number out of the air.
6:45
Speaker 1: That is not the energy that we are taking into
6:47
Speaker 1: twenty twenty four at all, Jess. And then let's move
6:51
Speaker 1: on to talking about quickly competitive pricing classic strategy. It
6:56
Speaker 1: involves analyzing what your competitors are charging for a very
6:59
Speaker 1: similar product door service, and then positioning yourself in the
7:02
Speaker 1: market accordingly. So I think it's also important that while
7:07
Speaker 1: it's essential to stay competitive, I don't want you to
7:10
Speaker 1: undersell yourself. It's so easy to get into like we're
7:14
Speaker 1: the cheapest war. But that's where we need to also
7:16
Speaker 1: go back and kind of put our value based pricing
7:18
Speaker 1: hat on as well. When looking at competitive pricing, there
7:22
Speaker 1: is always going to be someone who says, Jess, I
7:24
Speaker 1: could do it cheaper, all right, Well could you do
7:27
Speaker 1: it as well as I do? Yeah, And we also
7:29
Speaker 1: need to see the value that we have because Jess,
7:32
Speaker 1: you and I could go into the market with exactly
7:34
Speaker 1: the same product. Let's pretend we both invented coke, and
7:37
Speaker 1: we are both selling cans of coke one way, but
7:43
Speaker 1: we're both selling cans of coke and we're sitting down
7:46
Speaker 1: and you just go, all right, well, v sells the
7:49
Speaker 1: same product as me. You're just going to sell the cheaper.
7:52
Speaker 1: Is that where you actually want to lead your business
7:55
Speaker 1: and your strategy? Is that actually a really good, you
7:58
Speaker 1: know strategy? Should you maybe differentiate yourself in the market,
8:02
Speaker 1: have a different target demographic, you know, maybe look at
8:05
Speaker 1: rebranding or changing it. We're not saying completely do a
8:09
Speaker 1: different product because someone else is there. But also you're
8:11
Speaker 1: going to find that there are a lot of people
8:13
Speaker 1: who don't want to buy Victoria's coke. It's victorious. It
8:15
Speaker 1: doesn't matter if the ingredients are identical. They really like Jess. Yeah,
8:19
Speaker 1: they really like Jess. They love her authenticity, They align
8:22
Speaker 1: with her value, they align with you. We need to
8:25
Speaker 1: remember that that exists in business as well, because you
8:28
Speaker 1: could sell exactly the same product, but your consumer might
8:31
Speaker 1: be attracted to you not because of the product or
8:35
Speaker 1: the fact that it's identical to someone else, because they're
8:38
Speaker 1: supporting you. And that's really cool.
8:40
Speaker 3: If everyone keeps undercutting each other, eventually no one's making
8:43
Speaker 3: any profit exactly. Yeah, and Laura and Laura and Laura.
8:45
Speaker 1: It's a really big balancing act between being in line
8:48
Speaker 1: with what the market expects and then ensuring that your
8:50
Speaker 1: prices are reflective of the value that you're actually bringing
8:53
Speaker 1: to your consumer. So for me, that's a good one
8:56
Speaker 1: to understand. And obviously these strategies are kind of like
8:59
Speaker 1: tool us in your business toolkit, and the key is
9:02
Speaker 1: to choose the one that aligns best with your unique
9:05
Speaker 1: value proposition. To me, the beauty is, you know, confined
9:08
Speaker 1: to one jest. As I said before, you can mix
9:10
Speaker 1: a match and do please feel free to mix and
9:14
Speaker 1: match based on your businesses evolving needs. I guess, as
9:17
Speaker 1: I said before, this is how I manage pricing in
9:20
Speaker 1: my business. There's not just one size fits all pricing
9:22
Speaker 1: strategy because sometimes that's just not going to work, and
9:26
Speaker 1: vice versa.
9:27
Speaker 3: I think there are all really good options. I think
9:29
Speaker 3: it can be super overwhelming when you're sorting out your pricing,
9:32
Speaker 3: especially when you're first starting out, because you have no baseline,
9:35
Speaker 3: you've received no feedback, you've got no idea, and that's
9:39
Speaker 3: where I guess assessing what other people are doing can
9:41
Speaker 3: be really useful. But I think that's also why it's
9:44
Speaker 3: really great to lean on the community of people around you.
9:47
Speaker 1: Like the business Bible.
9:48
Speaker 3: Community exactly, talking to other people in the business Bible community,
9:51
Speaker 3: talking to maybe other friends you have that have started
9:53
Speaker 3: businesses or people that are working in similar spaces. Because
9:56
Speaker 3: having those conversations, I think I've had a few are
9:59
Speaker 3: heart moments. It's where I've spoken to someone and said, oh,
10:01
Speaker 3: I'm charging this for this, and the I've gone, oh
10:04
Speaker 3: my god, you should be charging five times that, and yeah,
10:07
Speaker 3: oh my god, what have I done? Exactly? So I
10:10
Speaker 3: feel like I personally like to definitely look at what
10:13
Speaker 3: other people are doing, and depending on how I'm making money,
10:16
Speaker 3: as you said before, it changes. When I rent dresses,
10:18
Speaker 3: I do try and undercut the market a little bit
10:20
Speaker 3: because because you just want to see the dress out
10:22
Speaker 3: the door exactly right. But when it comes to I
10:25
Speaker 3: guess my small business and my price is for content creation,
10:28
Speaker 3: you do have to look at value, and it can
10:30
Speaker 3: be hard because sometimes people think it's such a simple thing.
10:34
Speaker 1: And it's not. And I've had that too before. Obviously,
10:38
Speaker 1: I think we should do a whole episode on how
10:39
Speaker 1: influencers get paid I think people would be so perfect
10:42
Speaker 1: a bit interesting. But you know, I've had people approach
10:46
Speaker 1: me and say, hey, like, you know, we want a
10:48
Speaker 1: video for this, and you know a couple of photos
10:51
Speaker 1: for this, and this is what we would like you
10:52
Speaker 1: to create. And you know, Jess, you might go back
10:55
Speaker 1: with my prices and be like, cool the charges xyz
10:58
Speaker 1: and this is it, and they go, oh, well, such
11:00
Speaker 1: and such could do it way cheaper. Can you match it?
11:03
Speaker 1: And you go, well, I'm not such and such, Like
11:05
Speaker 1: there's a reason you came to me instead of that person.
11:09
Speaker 1: And I'm hoping that it's because you can see my
11:11
Speaker 1: value and my authenticity and what I bring to the
11:14
Speaker 1: table and how that is very different from what they do.
11:17
Speaker 1: And if that's the price you want to pay, go
11:19
Speaker 1: with that person. And I'm not going to match them
11:22
Speaker 1: just because somebody else is charging less. And I think
11:24
Speaker 1: there's a lot of power in being able to say that.
11:27
Speaker 1: Like I remember when we first went back, Jess, I
11:29
Speaker 1: was like, ah, they're going to ditch me. And sometimes
11:32
Speaker 1: people turn around and go yep, absolutely fair. Cool you
11:35
Speaker 1: go exactly yeah.
11:37
Speaker 3: So I think being able to articulate your value once
11:39
Speaker 3: you as a small business owner know why you're charging
11:42
Speaker 3: what you're charging, you can articulate that to consumers, and
11:45
Speaker 3: it can also give you a little bit of confidence
11:47
Speaker 3: in what you're doing. And I feel like all of
11:48
Speaker 3: the strategies that you've mentioned can help people feel a
11:52
Speaker 3: bit more on top of it. And maybe we should
11:55
Speaker 3: address the elephant in the room, which is, once you've
11:57
Speaker 3: set those prices, how do we go about increasing them?
12:01
Speaker 1: Hello, I'm worth more today than I was yesterday. Good
12:05
Speaker 1: day to use end of conversation. Absolutely so, I guess
12:08
Speaker 1: the question here is, like Lendy, you increase your prices.
12:12
Speaker 1: A good time is when you find out that somebody
12:14
Speaker 1: else doing exactly the same thing is charging five times
12:17
Speaker 1: what you're charging. But with this timing is key. It
12:21
Speaker 1: often really comes down to increased costs and an improved
12:24
Speaker 1: offering and market demand. So I feel like increasing prices
12:28
Speaker 1: a lot of people are like, Oh, I'm really bad
12:30
Speaker 1: at it. I think it should be an annual thing.
12:32
Speaker 1: It should be a calendar reminder, Hey, on the first
12:35
Speaker 1: of January. I increase and review my prices every single year.
12:39
Speaker 1: And I think that by setting that expectation with your consumer,
12:43
Speaker 1: they don't not expect it because it's very hard to
12:45
Speaker 1: be in business for ten years and have you know
12:48
Speaker 1: your candles selling at twenty dollars a candle, and then
12:51
Speaker 1: after ten years you go actually need to get back
12:53
Speaker 1: on par with the market. My candles are now seventy
12:56
Speaker 1: dollars each.
12:57
Speaker 3: Shocked at the system.
12:58
Speaker 1: Shocked to the system. You can assumer is really confused
13:01
Speaker 1: because you've put it off for so long, because we
13:03
Speaker 1: all bury our heads in the sand, but ultimately it
13:05
Speaker 1: shoots you in the business foot. So to me, the
13:08
Speaker 1: important thing here is to really communicate the value that
13:11
Speaker 1: you're providing. If your customers see the value, they'll be
13:14
Speaker 1: more accepting of the changes and increased prices. It's a
13:18
Speaker 1: topic that can make even I guess the most well
13:20
Speaker 1: seasoned business professional a bit jittery, Like it's not something
13:23
Speaker 1: that is easy to have a conversation about, Like I
13:27
Speaker 1: am so good at empowering other people to increase their prices. Yes,
13:32
Speaker 1: the second I do, I'm like, is that reasonable? Jess,
13:34
Speaker 1: do you think that's reasonable? Do you think they're going
13:36
Speaker 1: to think that? I'm absolutely taking the mickey? Like, I
13:39
Speaker 1: get the analysis paralysis as well. Don't worry. I wish
13:42
Speaker 1: I didn't. I wish I could be like, I don't
13:44
Speaker 1: follow in my footsteps. But let's be real, this is
13:46
Speaker 1: more about being authentic to me. It's crucial to recognize
13:50
Speaker 1: the value of what you're offering and the expertise that
13:53
Speaker 1: you're bringing to the table.
13:54
Speaker 3: Right.
13:54
Speaker 1: So small business owners are so guilty of this, Jess,
13:58
Speaker 1: and it is under rest estimating their worth. But here's
14:02
Speaker 1: the thing. Your prices should actually reflect the growth and
14:05
Speaker 1: enhancements that you've made on your products and services. My friend,
14:08
Speaker 1: if you've been doing this for twelve months, you have
14:10
Speaker 1: twelve months more experience than what you did a year ago.
14:13
Speaker 1: That is worth something. Yeah, Like, whether it's twelve months
14:17
Speaker 1: or ten years, it doesn't matter. We should be consistently
14:20
Speaker 1: reviewing our prices and honestly, do not be afraid to
14:23
Speaker 1: back yourself and the value that you provide. Confidence in
14:27
Speaker 1: your pricing. It's going to sustain your business, but it's
14:29
Speaker 1: also going to make sure that you have the resources
14:31
Speaker 1: to continually improve and innovate. Like you didn't just jump
14:35
Speaker 1: on a hamster wheel, so it could be a hamster
14:37
Speaker 1: wheel forever, Like we need a whole hamster castle and
14:40
Speaker 1: we are slowly building it. And whether that is you
14:44
Speaker 1: know your intention or not, you need to be updating it.
14:47
Speaker 1: I don't care if it's your side hustle and you go, oh,
14:49
Speaker 1: vib it, you know, I'm like Jess, I just do
14:52
Speaker 1: some content creation on the side. It's not my full
14:55
Speaker 1: time job. I don't even know if it want it
14:57
Speaker 1: to be my full time job. Cool Well, indexation happens
15:00
Speaker 1: each and every single year. I don't even care. If
15:02
Speaker 1: it's your side hustle and you only do a few
15:04
Speaker 1: small gigs a year, they're more expensive next year because
15:08
Speaker 1: the cost of a dollar today is more than a
15:10
Speaker 1: cost of a dollar tomorrow. So I don't care if
15:12
Speaker 1: it's a small business or a side hustle or something
15:15
Speaker 1: you do occasionally. We need to revisit our prices. And
15:18
Speaker 1: I think the smaller your business, the more you go, oh,
15:21
Speaker 1: it's not worth it. Like I just do it on
15:22
Speaker 1: the side. You might be like a mum and you
15:24
Speaker 1: do like birthday cakes on the side. You might get
15:26
Speaker 1: one or two a month. They're more expensive next year,
15:30
Speaker 1: my friend. It's the way the world works. We need
15:32
Speaker 1: to keep up otherwise you're going to be undervaluing yourself.
15:36
Speaker 1: And that's not what we do in business. That's not
15:39
Speaker 1: very business Bible, is it not at all? So, Jess,
15:41
Speaker 1: when you back yourself, you're not just increasing your prices,
15:44
Speaker 1: You're investing in the future success of your business. And
15:47
Speaker 1: you need to remember that small business owners absolutely well
15:51
Speaker 1: and truly deserve to be well compensated for the incredible
15:54
Speaker 1: value that they bring to their consumers. Sometimes it's just
15:57
Speaker 1: really hard to see that. Like not the consumer. They
16:00
Speaker 1: see it, that's why they pay you, but it's so
16:02
Speaker 1: hard for us to see it ourselves. So shying away
16:05
Speaker 1: from acknowledging your worth and making necessary adjustments to your
16:08
Speaker 1: price strategy is going to shoot you in the foot.
16:11
Speaker 1: I promise you have earned it, and you are worth it,
16:13
Speaker 1: and you deserve it.
16:14
Speaker 3: Just do it. Yeah, I think as well, it's about
16:17
Speaker 3: communicating with your community. Like I follow a few small
16:20
Speaker 3: businesses that I've purchased from, maybe I follow them on Instagram,
16:23
Speaker 3: and particularly for product based businesses. In the last twelve
16:26
Speaker 3: months or so, I've seen people say, hey, everyone, like
16:29
Speaker 3: the cost of freight has gone up, the cost of
16:31
Speaker 3: my ingredients, all my materials has gone up. So as
16:33
Speaker 3: of you know, the first of July, we're putting our
16:36
Speaker 3: prices up x y Z, and that transparency can one
16:40
Speaker 3: help you seem really authentic and relatable and to help
16:43
Speaker 3: people understand why you're doing it. I think sometimes we
16:46
Speaker 3: worry about looking greedy, and particularly for someone like it, Yeah,
16:49
Speaker 3: particularly for someone like me who has a service based business.
16:52
Speaker 3: I'm providing content. I'm editing content for brands, or I'm
16:56
Speaker 3: producing content for them for my platform, for their platform,
16:59
Speaker 3: whatever they want. It can be harder to quantify because
17:02
Speaker 3: if I was working a pay as you go a job,
17:03
Speaker 3: I'd have an hourly rate and that would.
17:05
Speaker 1: Be but that's not what you're doing.
17:07
Speaker 3: Yeah, And so it's kind of one of those things
17:09
Speaker 3: where I think, even if people are going to come
17:12
Speaker 3: back to you and question it, saying, oh, as you
17:14
Speaker 3: were saying earlier, I am an expert in my field,
17:18
Speaker 3: or I produce quality at a higher rate than perhaps
17:21
Speaker 3: other people do, or I put time to do research
17:25
Speaker 3: on your brand and create something that really speaks to
17:27
Speaker 3: your history or whatever that might be. I think articulating
17:30
Speaker 3: that to whoever you're talking to can really help you
17:33
Speaker 3: feel a bit more confident talking about those prices and
17:36
Speaker 3: those price adjustments. But let's go to a really quick break.
17:39
Speaker 3: I think and on the other side, we're going to
17:41
Speaker 3: chat about some of the hurdles that small business owners
17:44
Speaker 3: face when it comes to making the decisions around their pricing.
17:47
Speaker 3: Don't go anywhere, all.
17:52
Speaker 1: Right, Jessic, go RICI we are back, and I am
17:54
Speaker 1: excited because it's about to get a little bit juicy.
17:57
Speaker 1: We're in the midst of exploring the intricacies of pricing
18:00
Speaker 1: in the world of small business and how to actually
18:02
Speaker 1: back yourself. Obviously, I am Victoria, and Jessica thankfully has
18:08
Speaker 1: it run away from yet. We are discussing pricing strategies
18:11
Speaker 1: and the importance of backing yourself.
18:13
Speaker 3: So let's address some of the hurdles that small business
18:16
Speaker 3: owners face when it comes to those pricing decisions. Vidie,
18:19
Speaker 3: what are the common challenges and how can we as
18:22
Speaker 3: small business owners try to overcome them?
18:24
Speaker 1: All right? So, one of the main challenges that I
18:26
Speaker 1: see from small business owners and side hustlers alike. I
18:30
Speaker 1: touched on it really early on in the show. It
18:33
Speaker 1: is imposter syndrome, which is that nagging feeling of not
18:36
Speaker 1: being worthy or not being up to scratch, or that
18:38
Speaker 1: someone's going to tap you on the shoulder and be
18:40
Speaker 1: like hey, Victoria. So yeah, you know how you were
18:43
Speaker 1: a financial advisor and now you're not. Yeah, you actually
18:47
Speaker 1: have to leave. You don't know what you're talking about,
18:49
Speaker 1: your fraud. Regardless of your degrees, it's just not good enough.
18:53
Speaker 1: Please sit down, like gooded. How many times have we
18:56
Speaker 1: all had that feeling in the back of our minds
18:59
Speaker 1: when trying to, you know, push forward with a new
19:01
Speaker 1: product or you know, offer a new service, or just
19:04
Speaker 1: show up on social media. Like the amount of times
19:06
Speaker 1: I'm like, oh, like if I'm coming from somebody who
19:10
Speaker 1: has a lot of followers, but like I'm either all
19:13
Speaker 1: there and you're getting twelve Instagram stories a day or
19:16
Speaker 1: it is dead pan from me. And that's usually when
19:18
Speaker 1: I'm sitting there going, oh am I doing the right thing?
19:20
Speaker 1: Do people think I'm silly? Like I still have those moments.
19:24
Speaker 1: So it's really important that small business owners recognize their
19:28
Speaker 1: unique skills and experiences and understand that that's what actually
19:31
Speaker 1: sets you apart. Another one of the hurdles is, and
19:35
Speaker 1: I get this a lot, a fear of losing your
19:38
Speaker 1: consumer or your audience. But the reality is that quality
19:41
Speaker 1: and value will always outweigh price in a customer's mind,
19:45
Speaker 1: and if it doesn't they're not the right customer for you.
19:48
Speaker 3: Yeah, imposter syndrome is the worst. It's something that I've
19:52
Speaker 3: definitely struggled with, and I want to know a bit
19:54
Speaker 3: more about you kind of maybe struggling with it too.
19:57
Speaker 1: Yeah, obviously I have mentioned that I have, and if
20:00
Speaker 1: I'm being honest, like I would say, it's a weekly struggle,
20:03
Speaker 1: not daily anymore. Sometimes I wake up but I'm like, oh, hello, Audacity,
20:06
Speaker 1: let's go. But it's something that I definitely struggle with still,
20:10
Speaker 1: and it's something that I often find myself checking in
20:13
Speaker 1: regularly with because it's so easy to feel like you're,
20:17
Speaker 1: you know, beyond your depths, but we need to remember
20:20
Speaker 1: that we're not. And ultimately, Jess, we're all just out
20:22
Speaker 1: here making it up. Like if you see someone selling
20:25
Speaker 1: a very similar product to you online and you're like,
20:28
Speaker 1: oh my gosh, they know everything. No, they just are
20:30
Speaker 1: pretending to know everything, Like every single one of us
20:34
Speaker 1: has been on the journey before of where you're like, oh,
20:37
Speaker 1: I don't know how to do a website. Cool, now
20:39
Speaker 1: I've done my own website, Jess Slay, I know how
20:41
Speaker 1: to do that. But you might look at me online
20:44
Speaker 1: and go fi right. I can't believe these just finished
20:46
Speaker 1: all of her own websites. I'd never mate. Do you
20:48
Speaker 1: know how many times I cried over that because I
20:50
Speaker 1: didn't understand the process. I didn't know what was going on.
20:53
Speaker 1: But you learn as you go. That's half of the
20:55
Speaker 1: brilliance of small business owners. That's what we're willing to do.
20:59
Speaker 1: So I need you to remember that. But also you
21:02
Speaker 1: need to know that you are exactly where you are
21:04
Speaker 1: supposed to be. It starts with mindset, and you need
21:07
Speaker 1: to believe in the value that you provide, and then
21:09
Speaker 1: remember that you're not just selling a product or a service,
21:12
Speaker 1: You're solving a problem for your consumer. I also want
21:16
Speaker 1: you to regularly assess your price and ensure that it
21:18
Speaker 1: aligns with the value that you're a guess delivering, because
21:21
Speaker 1: that will give you a level of confidence. You actually
21:23
Speaker 1: know I am worth that price or no, my paintings
21:27
Speaker 1: are worth that if people are messaging you onl because
21:30
Speaker 1: people online have so much audacity, just uff going your
21:34
Speaker 1: price is are too much? Okay? Noorries like go find less?
21:37
Speaker 3: Yeah, do you think it's worth people popping a reminder
21:40
Speaker 3: in their calendar once a year, twice a year to
21:43
Speaker 3: check in with their competitors, to check in with their
21:46
Speaker 3: own costs, to review their pricing structure, to make sure
21:48
Speaker 3: that it is actually a guaranteed annual thing that they're doing.
21:52
Speaker 1: Yes, one hundred percent. I think being aware of your
21:56
Speaker 1: competitors is really important, but you can also end up
22:00
Speaker 1: overwhelmed by them. So we need to make sure we're
22:02
Speaker 1: not doing that too often because if we do that
22:05
Speaker 1: too often, we could find ourselves in that sticky situation
22:08
Speaker 1: where comparison is actually the thief of all joy.
22:10
Speaker 3: Yeah, one hundred percent. So it's all about having that
22:13
Speaker 3: confidence and reassessing your worth and just making sure that
22:16
Speaker 3: you're being.
22:16
Speaker 1: Paid what you deserve exactly. I guess when it comes
22:19
Speaker 1: to a lack of confidence or imposter syndrome, I would
22:22
Speaker 1: say it's the silent underminer that plagues a lot of
22:25
Speaker 1: us small business owners and overcoming it. It's actually just
22:29
Speaker 1: going to start with recognizing where you're standing, what's going
22:32
Speaker 1: on going you know what, No, this is a joke.
22:36
Speaker 1: Obviously more women than men suffer from imposter syndrome. So
22:39
Speaker 1: if you're a man that suffers with it, fantastic. We
22:42
Speaker 1: need to deal with it. But if you're a woman.
22:44
Speaker 1: It's kind of expected that you go through something like
22:47
Speaker 1: this because the entire universe somehow works against us and
22:51
Speaker 1: makes us question our authority at all points in time.
22:55
Speaker 1: And it's really easy to, as I was saying before,
22:58
Speaker 1: fall into that trap of comparing yourself to others and
23:01
Speaker 1: going all right, well far out. Jess is really good
23:04
Speaker 1: at creating content. You know, she creates content for herself
23:07
Speaker 1: and like brands and puts it on her socials. Sometimes
23:10
Speaker 1: brands pay her and they just put on there. So
23:12
Speaker 1: like this is wild, like I could never imagine getting there.
23:16
Speaker 1: But what you're doing is comparing somebody else's middle to
23:20
Speaker 1: your beginning. And while looking into your competitors is really
23:23
Speaker 1: important for market insights, I think it's very important to
23:26
Speaker 1: have your finger on the pulse and understand where the
23:27
Speaker 1: market is sitting, we also need to make sure that
23:30
Speaker 1: you're not comparing yourself to somebody else's final destination. If
23:34
Speaker 1: you've just entered the market and you're comparing yourself to
23:37
Speaker 1: businesses who have existed for five years, they have had
23:39
Speaker 1: five years of learning and mistakes, and I guess it's
23:42
Speaker 1: really important to understand that everyone is at a different
23:46
Speaker 1: stage in their journey. So instead of letting imposter syndrome
23:49
Speaker 1: dictate your confidence, how about we start on focusing on
23:52
Speaker 1: growth and the progress that you've made so far and
23:55
Speaker 1: celebrating that. Like, how cool is it that you identify
23:58
Speaker 1: as a small business owner? What are your next steps?
24:01
Speaker 2: Yes?
24:01
Speaker 1: Great, that business that has existed for five years. Of
24:05
Speaker 1: course their marketing is going to be a bit slicker
24:08
Speaker 1: than yours. Of Course their product is going to have
24:10
Speaker 1: a little bit more refinement. They've had five years to
24:13
Speaker 1: work on that. Yeah, but you might slip in and go, wait,
24:16
Speaker 1: hold on, like, I'm pretty competitive. How cool is it
24:18
Speaker 1: that they've been here for five years and I'm.
24:20
Speaker 3: Not, Like, I'm on bath, it's excited, Like, we need.
24:22
Speaker 1: To celebrate ourselves. So I guess when we stop the
24:25
Speaker 1: comparison game, we're able to recognize our own worth and
24:28
Speaker 1: imposter syndrome kind of starts to lose its grip and
24:31
Speaker 1: it allows you to confidently set prices that are reflective
24:35
Speaker 1: of the true value of your business. It's honestly, not
24:38
Speaker 1: always about being exactly the same as others. It's about
24:41
Speaker 1: being authentically and unapologetically you, and don't forget want to
24:45
Speaker 1: remind people because I have been doing this recently. Social
24:48
Speaker 1: media is actually only ever going to be a highlights reel,
24:51
Speaker 1: even when small businesses are sharing their like behind the
24:54
Speaker 1: seams content of them struggling, Jess, Let's be honest, they're
24:58
Speaker 1: never going to show things that would actually risk their business, right, Yeah,
25:02
Speaker 1: They're not going to go, oh yeah, messed up by
25:04
Speaker 1: taxes last year, had the ADO chasing me. They're gonna
25:07
Speaker 1: be like, oh my gosh, look at this product design.
25:09
Speaker 1: We ordered it and thought it would be perfect and
25:11
Speaker 1: it just didn't work out. You're like, okay, so we're
25:15
Speaker 1: not really being that authentic here are we. We're trying
25:17
Speaker 1: to obviously share as much and be unapologetically us and
25:21
Speaker 1: authentic with our audience, and I think that's really important.
25:24
Speaker 1: But when you are comparing yourself to other businesses, just
25:27
Speaker 1: to remember they are never going to show the shit show. Yeah,
25:30
Speaker 1: no one would, it would be silly to do.
25:32
Speaker 3: So it's always going to be on some level curated
25:35
Speaker 3: because they're selecting what they do and do not show you.
25:37
Speaker 3: And it's so easy to get wrapped up in how
25:39
Speaker 3: well other people are doing and forgetting to focus on
25:41
Speaker 3: yourself and your business. But I'm feeling like I need
25:44
Speaker 3: to give my side hustle a little bit more love
25:46
Speaker 3: and get clear on my pricing strategies moving forward. So
25:51
Speaker 3: what do you say we call it today? And I
25:52
Speaker 3: jump right in.
25:53
Speaker 1: I think that is a good idea. I think it's
25:55
Speaker 1: time that you and I actually took ourselves out there
25:57
Speaker 1: and well deserved tacos. Thank you so much for another
26:01
Speaker 1: beautiful episode. I cannot wait for next months. I wish
26:04
Speaker 1: they were more frequent than monthly. We'll work on that
26:06
Speaker 1: after I've had a baby and sorted my life out.
26:08
Speaker 1: But have the best week, guys, and we'll see you
26:10
Speaker 1: on Friday.
26:11
Speaker 3: See then.
26:18
Speaker 1: The advice shared on She's on the Money is general
26:21
Speaker 1: in nature and does not consider your individual circumstances. She's
26:25
Speaker 1: on the Money exists purely for educational purposes and should
26:28
Speaker 1: not be relied upon to make an investment or financial decision.
26:32
Speaker 1: If you do choose to buy a financial product, read
26:34
Speaker 1: the PDS TMD and obtain appropriate financial advice tailored towards
26:38
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