A lot of women start up new businesses because of a desire to serve or a passion for an idea or concept. While this is a noble and spiritually rewarding approach to entrepreneurship, the fact is that your first goal in your business should be making money. Why? Because if you don’t make money you won’t have a business for long, and all the great ideas you have about helping the world will die because you won’t have the funds to continue.
I recently helped out an event planner with her business. She started her company because she wanted to serve a specific community that she loved. When we started working together, she was two years into her business. While she was indeed serving her community, she was about to go bankrupt and lose her business because she was losing money every single month.
On the surface, she had what looked like a successful business, with many sponsors and lots of people showing up to her events, but she wasn’t charging enough. She was so service-oriented, that anytime anyone complained about the price of tickets or a sponsorship package – she lowered her rates.
We had to get some clarity on what her number one priority was, which was making money. After all, if she didn’t make a healthy profit, her business would go under and her community would ultimately suffer.
So what did we do? We immediately doubled the amount she was charging. We also looked for easy ways she could add value to her customers for this extra price. For instance, vendors could pay extra to get exclusive rights for their industry or be featured in promotional materials and newsletters.
As a result, her events are a higher caliber and she’s better able to serve her community. And, now that she’s making a profit, she can serve her community for years to come.
It’s time to think about how you can charge more. What extras can you provide that are valuable to your customers, but won’t cost you a ton of money or time? Once you raise your rates, be confident when discussing your new higher price and stress the value you provide for the money.
And finally here’s a rule of thumb. At least a quarter of your potential customers should be telling you your prices are too high. If they’re not, it’s time to charge more.
Visit www.rechargemymojo.com for more information!
Contact Jason at Jason@rechargemymojo.com or ph: 905-781-4809
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