How to price your product or service to increase profit margins with Ruth-Joy Connell

Have you struggled with figuring out how to price your product or service? This is a common challenge for entrepreneurs. However, if you use the 4 Pillars for Pricing, you can price your product or service with confidence that you will attract the right buyers and clients. How to price your product or service is dependent on several factors within your business, as well as your revenue goals. Charging your worth and value If you have a calling and aren't acting on it you are doing a disservice to those who need your service, and your help. Likewise, if you don't charge for the service you provide, you are doing a disservice. Why? Because if people don't pay for something, they aren't going to be as invested in it and won't act and do the work that will create an impact. Your knowledge, your value, and your time are worth charging for. If God is calling you to something, it is okay to charge for it. Even in the Bible people made money. The key is to use that money for good, creating a ripple effect of good in the world. How to price your product or service Robyn emphasized creating a pricing structure that is aligned with your soulmate client. If you price based on your soulmate client and their financial resources, you may not attract them. This will result in frustration. The Pillars of Pricing Note that each pillar builds on the previous one to position your business for profitability. Profile Understanding who your target client is. Whether this is an individual or corporation, referred to as a profile. Understand the problem, challenge, or goal this person/company has that you can help them with. Problem – something that is causing their business harm. Challenge – something that they are struggling to overcome Goal – something that they want to achieve. You want to have a deep and thorough understanding of their problem, challenge, or goal and what they have tried, and what worked and didn't work for them in the past. What are the key factors that influence their buying decisions and what they are considering about investing in the solution they are looking for? This pillar is foundational for your understanding of what you are selling to the company and what they need. This is foundational for your confidence and for creating content that helps them understand how you can help them. By doing so, you will knock down barriers of objections because they will be confident in what you will provide for them. When you do the pre-work the numbers won't matter, they will know and understand the value you will provide upfront. Positioning This refers to a company's ability to influence the perspective of others and the work that they do. Another level of positioning is prestige. Prestige refers to how you influence your buyer's perception of your business. Ruth Joy used the example of Walmart, Target, and Nordstrom. Each one of them targets a unique population. They make sure that their profile is aligned with their positioning. Each one has its own level of success. Likewise, they attract the people that they are going to best serve. Listen to the episode on differentiation here. Read the full show notes and access all links. Would you like to know more about building a successful foundation for long-term success? Download my free eBook on the Purpose to Results™ Method and the Success Equation.