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As I have been working on my business model canvas and the section relating to value propositions, I find myself trying not to over extend myself. In speaking with clients and potential clients I find that everyone’s expectations are different. The services that I provide are in the realm of providing training and experiences. One thing that is in the back of my mind is that everyone has a limit to disposable income…my business largely depends on clients disposable income…so with that said, I am constantly struggling with providing something that is a of good value to the client and still allows me to cover my expenses. What are your thoughts on this?
My immediate gut response, and what I have heard from others, is don’t undervalue your worth. If your rate is comparable to what others charge, then you’re on the right track. I have bluntly asked people what is a reasonable hourly rate for what I do, with some reluctance, they answered me. Track your time to complete the task(s) to make sure you get paid for it. I’m not sure this was too helpful. This is something I will continue to question and will keep researching what competitors are charging.
Hi Robert, it’s natural to have empathy for your clients and this will serve you in many ways. What I can say though, is don’t get too hung up on price. You’d be amazed at what people are willing to pay when they are motivated. You are 100% right to focus on value creation. You want your clients to experience more value than they feel they have paid for. That does not mean you should drive the price down. It means you drive the value up. Rightly or wrongly, our society has perceptions around price. If you compete on price, you are very likely to create a perception that you aren’t as good as your competition. Competing on price is a race to the bottom. The only time this can be a useful approach is when you can be certain of volumes you can generate. When you compete on value creation, the sky is the limit. In situations where your participants truly are not in a position to pay for your services (perhaps a vulnerable population), you should still hold your price, but seek sponsorships/donations to provide the service to the beneficiary group. This is a common technique social enterprises use.
Erin.That is often one of my big problem also, I do decide for my clients if this is affordable or not. I retail “expensive” skincare and think, I would never pay this and decide for them that they won’t buy it. I need to put blinders on and let them decide, they know what they can afford, they know if that product meet their needs. It is possibly my biggest thing to work on. I never ask them if they need product or want to rebook as I all think they know if they need something more but often they forget or would like to know what is avail . I have to stop deciding for my clients .
My business is pretty clear on value propositions for acne clients, I offer acne treatments, help clear acne, support them through their journey, educate,
Pain relievers are I offer solutions, they don’t need to keep looking for products, I clear their acne, ….
Their gain, clear skin, education, empowerment.
I struggle putting all this together in phrases that are clear as I lack confidence in saying, hey I can do all this, that’s me!Hi Judith,
You need to believe in what you do, or your clients will pick up on that. I’m assuming you’ve tested your product on others and have achieved results. Document those success stories, celebrate them – those wins are what builds your confidence. That success has to be the foundation from which you draw your confidence.
When building your statements, is it possible to use your client’s own words in some way?
Erin.
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