223: Is It Time To Increase Your Prices?
Did you know that the average Australian business owner makes less in a year than an employee earning minimum wage?
As a business owner, you should know that your business revolves around people paying for your product or service. You need money to come in so your business can continue to trade. Despite being an essential component of any business, however, some entrepreneurs rarely discuss or even avoid the subject of pricing.
In this episode, Samantha and Tim tackle this highly important topic. They discuss why you need to increase your prices, how to analyse your finances, and what exercises you can do to arrive at your ideal pricing.
WHAT YOU’LL DISCOVER IN THIS EPISODE:
- Your business revolves around charging out your product or service (02:13)
- Why increase your prices? (02:50)
- A reverse engineering exercise to arrive at your ideal pricing (03:20)
- The average business owner in Australia withdraws just $44,000/year (04:18)
- A spreadsheet of expenses and fees vs. pricing (06:09)
- Add in your ideal life and plans (08:20)
- Do the exercise regularly (10:07)
- Hidden costs of services (10:57)
- Would you double your prices today even if you lose half of your clients? (12:25)
- Look at the supply and demand (13:33)
- If you could 10X your price tomorrow, what would you need to change? (16:13)
- It’s normal to be nervous when increasing your prices (16:54)
- Know the value you bring to the table (17:05)
- There are different perspectives about the value of a product or service (18:28)
- Things to put in place to work around pricing (20:37)
- Address your mindset about pricing (22:24)
- “Expensive” is relative (23:13)
- A tip for fixed-price projects (23:58)
- You may have money blocks (25:26)
- A challenge to you regarding your pricing (26:30)
For full show notes and links visit: https://samanthariley.global/podcast/223