Secret Bedfellows

“How much should I be charging?”

I couldn’t tell you how many times I have been asked that from small business owners.

My answer is typically: “that’s complicated”. There are a lot of factors that go into what you can charge: what are people expecting, what can they afford, what’s the temperature of the economy, how much value are you adding, how strong is your brand, and (most importantly): What is everyone else charging?

There’s only one way to find that out.

Well, maybe two ways.

Secret shopping is the obvious answer. You need – or your spouse, friend, mom, dog, somebody needs – to get a price from a competitor in your space to find out how much they’re charging.

Another (less popular) option is to become friends with a competitor. It’s a lot harder to do, but I have done it and it’s amazing when it works. It takes two people who are confident in themselves, yet humble enough to be open to learning and sharing.

If you don’t know where to start, join an industry association or networking group like your local Chamber of Commerce. You’ll find people who feel like they’re part of a group, on the same team, our industry or town against the world. If you can make friends with an enemy, and you’re truly both an open book to each other, in my experience you’ll both grow. There’s almost always enough for everyone.

Either way, you absolutely need to know what pricing you are bidding against, in order to know what you can charge (and why).

Raising your prices starts with shopping.

This is from Trail 1 of Profit Hiker: 11 Trails to gain lasting elevation in your business. Find the book right here and the program over there.