109 | Making The Move to Premium Pricing with Gene Hammett
Grow your business with more customers, more offers or higher pricing. Having all three is ideal. Developing your own plan to create premium pricing will help you grow your business. With this episode, we unpack the whole process of developing premium pricing for your service business. Increase your awareness around ‘enemies’ to pricing and get the 5 steps you need to implement to increase your prices.
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Gene’s Target Audience: Gene works with entrepreneurs who want to find the perfect match between their unique value and the people who will become their best clients and biggest fans.
There is a level of resistance when it comes to pricing. But the reality is that not increasing your prices is a disservice to you and your clients. This episode is about making moves towards premium pricing because this is exactly how you position yourself. People (your target audience) pay attention to this!
Warren Buffet says, “Price is what you pay- value is what you get.” This contrasts to how we traditionally think about creating revenue (getting paid by the hour). It’s about creating value for your clients. Some people gravitate towards looking at what their competitors are doing. It is not as simple as that. The price that you ask for is directly related to how you see yourself. Mindset is a big player in this one.
Gene learned this lesson the hard way when he started off charging $50/hour for his coaching services. He quickly learned that learning more effective strategies around pricing would prove crucial to building a successful business. He soon became an expert- an Authority in this area.
QUALITY OVER QUANTITY is an important concept here. It’s not about how many people you can impact in numbers- but how deep the impact you make is. Creating significant impact comes with the investment you make in your clients. Are you serving as a catalyst in the lives of your clients? Are you providing solutions to their problems?
If you know you are excellent in your service, connecting with “premium” clients is the direction you want to take. Premium clients are easier to serve, more fun to work with and allow you to do your work.
As mentioned before, mindset is the foundational aspect to how you navigate this. Negative belief systems and excuses within you will keep you playing small. Opening up to possibility and challenging limiting beliefs is key to moving past this.
Being clear about what your results look like is also key. Most people believe that results are often subjective. This is not true. Gene shares a formula he uses to determine his own pricing: R + PV + M = Premium Pricing.
R: Stands for results. What results are you getting by doing the work you do? What can you measure? Is it quantitative/qualitative?
PV: Stands for perceived value. This is how they (the client) see the value in what they receive from you.
M: Stands for mindset. It’s about challenging the limiting beliefs around what’s possible. True
belief in yourself will position you as the Authority. Podcast 105 and Podcast 59 delve deeper into this topic.
Tomorrow’s webinar (12/4/14) will explore the concepts discussed in this podcast. If you are unable to attend the webinar at it’s scheduled time, sign up anyway and a recording will be sent your way. Plus, everyone who shows up will receive a special gift!
In this episode we’ll cover:
- Why making the switch to premium pricing positions you as an Authority
- How premium pricing connects you to your ideal clients
- The formula that determines objective results
- Why the impact you make is more important than how many clients you have
- Why the price you ask for is related to your own self- concept
- Why awareness of your own mindset is the foundation for all of this
Resources and Links
- Webinar on PRICING 12/4/14
- Book: 5 Costliest Mistakes Broke Web Designers Make and How You Can Stop Making Them
- Listen to Podcast 105 and Podcast 59 for more on this topic
- Share the LOVE and TWEET about this episode.
To give Gene a shout out, follow him and send him a message. Or connect with him on LinkedIn or Twitter at @genehammett.
Do you have questions about today’s episode?
Did you know that you can apply to chat with me by phone? This is a limited time offer to help anyone that is serious about refining their business as well as developing a clear & compelling strategy that will drive them forward. Complete the questions and our team will follow up with you to schedule time for your “Vision Breakthrough Session”. These are limited to 30 minutes, completely free and oh, so valuable. Apply Now!
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