Should My Pricing Strategy Evolve As My Business Grows?

This is such a great question, because pricing can be such a tricky subject especially in consulting where there is no standard rate for work. Before we get into it, I want to name that pricing is a journey, but it isn’t a journey you want to start without a map.

Now, when I’ve spoken to aspiring consultants in the past, many have said that they’d just pick a number that “felt right” for their pricing. There’s nothing wrong with doing what feels right, but in reality, the first person you’ll have to convince of pricing is yourself. So if you pull a number out of the air and can’t even justify why you chose it, how can you expect to justify it to your client? 

Don’t start a journey without a map and don’t name a price without a plan. No matter what the number is, you will have to be clear and confident in that number. You will have to be able to understand and internalize your rationale behind that number. It will have to make sense to you. Because if it doesn't make sense to you, you are more likely to waver from that number. 

What’s important here is that you are confident in your pricing strategy every time you send a contract to a client. You could be charging $500 or $50,000, but once you are confident in your price point, you’re going to be able to speak confidently for that number and explain it to your client, especially if they come back with another proposal asking why you're picking that number. 

Once you’re confident in your pricing, do you have to stick with it and never change it again? Of course not! For every client and contract, you have to determine what price will feel meaningful for you. What price point would give you joy? What amount would motivate you to be able to show up for that client?

The answer to all of those questions can change and fluctuate over time. What gave you joy when you first started your business might be different than when you're three years into your business. Remember that pricing is a journey and you always have the right to change your mind. I've had my consulting business for three years. The pricing I started with in my business is not the same pricing that I have today.

Sometimes it takes doing the work to develop your pricing strategy. If you choose a price and then get into the work and decide: "Actually, you know what? I have clear evidence of my impact. And I actually need to charge them more because I'm actually creating this type of result for my client." You take that data and external proof with you to your next client, rethink your pricing strategy, get confident in it, and put that new pricing into your next contract.

All that said, I think the most important part of pricing is confidence. You must be confident in your pricing. You must understand your pricing. Don’t pick a number and hope for the best. Choose a price and strategize why you’ve chosen that price so that, if you have to, you can explain your rationale to your client.

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