Fear and Under-Pricing in the Stamping World

By | February 28, 2011

By John Sanpietro

One of my clients recently asked how much I thought she should charge for a full-day event she was planning.  When she gave me all of the details, I told her the event should run anywhere between $100-$150 per person.

 I could almost hear her rearing her head back in shock when I told her that.  And she responded with the same response I've heard countless times over the last decade:

 "My customers won't pay that." 

 My response was also the same response it has been for the last decade:

 "They won't pay it if you don't ask them, and if they're not willing to pay it, you need to market to someone who will."

I backed up my statement by explaining that, if you're charging $20-$25 for a 2-hour class without meals, etc.  Then $100-$150 for a full day event (notice I didn't say class) with meals should easily go for $100.  In fact, $100 is actually a bargain.  I further backed it up by going online and showing my client comparable events at comparable prices.  Her response? 

 "But my customers won't pay that." 

 My response:

 "Not if you don't ask them, and if they're not willing to pay it, then you need to market to someone who will."

 Fear is an emotion we deal with in business all the time.  And, for many, there is no greater fear than the fear of rejection.  It is this fear that often motivates people to avoid taking risks.  It is this fear that causes people to not charge what they're worth because they're afraid people won't pay it.

 Think about it… we assume our customers won't pay what we deserve to be paid.  Then, rather than doing the smart thing, which is to go out and find new customers who will, we continue to do business with the people who don't value what we offer.  

Why?

 Fear!!

 If this sounds like you, my question is this:

 "If you continue this practice, do you ever see a day where you'll get paid what you deserve?  Will your business ever be where you want it to be?"

 It's important to consistently look at the path we're on… looks at the actions we're taking… and ask ourselves, "is this getting me where I want to go?"

 If the answer is no, you need to get off that path!  You need to stop doing those things!

 And, yes, getting off of a familiar path can be scary.  So scary, in fact, that some of us will never leave it, but to what end?  Why remain on a path that doesn't lead you to your destination?

 Most of the problems we face in business are of our own making.  They are also almost all within our control to influence, if not outright rectify. 

 It's the fear that keeps us from taking control and rectifying the situation.

So, instead of focusing on the fear, focus, instead, on the destination.  Stay focused on the destination as you make the necessary changes to turn your business into the one you want and deserve.  When all is said and done, you'll be less afraid… and a lot more successful.

 

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