EPISODE 036 | APPLE PODCASTS | SPOTIFY

In this episode we're discussing how to communicate your worth and ways to really help you understand and confidently see the immense value of your offerings. It's more than just the exchange of services for payment; it's about establishing a connection with your target audience, ensuring they understand not just what you do, but why it matters and makes a difference to them.

We'll look at how to effectively present your offerings, making sure your clients see the heart, the dedication, and the expertise you bring and deliver. From actionable strategies to mindset shifts, we're covering methods to help you confidently assert your worth. I very much hope this episode will affirm the value you bring to every project, customer and client you work with.

Understanding Your Value

The idea for this episode came from one of our current participants on the Goal-Getters Mastercass. It came up as a question she asked, around your business mindset and the best ways to offer your services to your client, so you can really communicate your worth. I’m so grateful and inspired by our current masterclass group. We have created such an incredible community, everyone has the most phenomenal business, with seriously exciting plans. It has been an absolute joy and privilege to be hosting and I can’t wait to see how all their stories unfold.

Let’s get back to the episode.

Looking back to my first few years within my business, to where it is today, and you can definitely see a huge transformation. It hasn’t been just about growth and specifically revenue; it has been about recognising the unique value that my services have offered. Initially, I definitely viewed my business in simple terms of product and service delivery. However, an important mindset shift happened when I realised the unique impact of my work on clients' lives, specifically how the designs I created led to incredible experiences and memories, and today with my focus on helping our students with their businesses.

Recognising and communicating this unique value became such an important foundation of my brand's success. And hugely importantly, it moved my perspective from competing on price to highlighting the distinctive benefits only my brand could provide.

Value in your offerings goes beyond the basic delivery of services and products. It includes your experience, your level of expertise, and the personal attention you give to each client. These are the elements that differentiate you in your market. It's so important to recognise and articulate these aspects of your offerings because they are what make your brand and its services and /or products unique and sought after. They're not just buying a service or product; they're investing in the quality, reliability, experience and expertise, and the engagement you bring.

Take a moment to write down the skills, experiences and uniqueness you have through your offerings. Consider what sets you apart from others in your field. What specific advantages do your clients and customers gain by working with you and/or buying from you? Focus on the aspects of your offerings that go beyond the basic expectations. This could include your unique approach, the quality and style of your products, the unique solution they give, or the efficiency and reliability of your service, backed with testimonials from numerous clients and customers, the unique knowledge or contacts you have, or the personalised method you provide. This exercise is aimed at helping you to not only understand but also to be able to clearly articulate the unique value you offer, which then in turn helps you to be more effective and confident in communication with your clients.

The Psychology of Pricing in Services

Pricing can be really tricky, it’s definitely an area I put a huge amount of thought into, looking to see what others in my sector were charging, working through spreadsheets to make sure all costs were covered and we could make a justifiable profit, and still ensure we were providing value for our clients. But I realised that it's about far more than just covering costs and matching competitors. It's a direct reflection of the value you believe your service and/or products provide and, crucially, how your customers perceive that value. This perception influences their decision-making process significantly.

When you set a price, you're communicating the worth of your expertise, your experience, your delivery, the quality of your products, and what your customers benefit from and/or the outcomes you can achieve for your clients. This is why understanding the psychology behind pricing is so important. A well-considered price tells your clients that your offerings are valuable, desirable, and worth their investment.

Within specifically service-based businesses, two common pricing strategies stand out: value-based pricing and time-based pricing. Value-based pricing focuses on the benefits and outcomes your service provides to the client. It's about charging what your service is worth to the client, not just what it costs you to deliver. This strategy can lead to higher satisfaction for both you and your clients, as it aligns the price more closely with the value perceived and received.

On the other hand, time-based pricing, where services are charged per hour or day, can be simpler to calculate and explain to clients. However, it might not always capture the full value you're providing, especially if you deliver significant results in a short amount of time.

Let’s look at an example of a small marketing consultancy, the owner of which I spoke to recently, over the last year she shifted from time-based to value-based pricing. Initially, her and her team charged by the hour, a model that clients accepted but often led to discussions about the number of hours spent on each task. The owner realised that what their clients truly valued was not the hours worked but the results achieved - increased brand visibility, customer engagement, and sales.

They transitioned to value-based pricing, setting their fees based on the project's anticipated impact on the client's business. This shift required clear communication about the benefits of their approach and the results clients could expect. It also meant saying no to potential clients who preferred to pay for time over value. However, the results were seriously transformative. The consultancy attracted clients who were more aligned with their perspective on value and willing to invest in outcomes rather than hours. Their projects became more strategic, their client relationships more collaborative, and their revenue increased as they were able to capture the true value of their expertise and results.

This example, and there are so many others, illustrates the huge benefit - both for you as an owner and for the client - of pricing as a reflection of value. By understanding the psychology behind pricing and choosing a strategy that aligns with the value you provide, you can elevate your business, attract the right clients, and ensure your pricing communicates the worth of your services effectively.

For product-based businesses, the principles of value-based pricing are equally important. Unlike service-based pricing, which often revolves around intangible results, product pricing must consider the tangible goods provided but can still focus on the exceptional value these products bring to the customer. For example, a craft chocolate shop may price its products not only based on the cost of ingredients and production but also on the unique sourcing of its cocoa, the artisanal methods used, and the whole experience it offers to chocolate enthusiasts.

In this context, value-based pricing helps customers understand why certain products may be priced higher than conventional options due to their superior quality, ethical sourcing, or unique features. This approach allows businesses to differentiate their products, even in a crowded market, and justify their pricing strategy. It’s about communicating clearly why these products are worth a premium, aligning the price with the perceived customer value rather than merely covering costs.

Communicating Your Worth

OK, so how do you communicate the value of your services, to make sure you can convert interested and potential people into loyal clients and customers.

When you describe your offerings, be this in person, on your website, through marketing or social media, make sure you use clear, impactful language. Always avoid jargon and complex language that might confuse people. Instead, use clear, straightforward language that highlights the benefits of what you do and provide. Focus on how your services and products solve problems or improve situations or bring a sense of happiness for your clients, not instead on the intricate technical details. It’s so important that you focus on the solutions you provide, the way you support your clients with whatever needs they have, that are specific to what you provide, effectively your solution to their need.

Make sure you customise your communication to address the specific needs and if it’s relevant, the concerns of each client. Show that you understand their unique challenges and what it is they are looking for, and explain how your services or products can offer targeted solutions. This also very much applies to offerings that are fun and provide entertainment or luxury based, they still very much provide a solution.

And share examples and testimonials from past clients who have benefited from your services and products. This of course builds credibility and helps potential clients to see the tangible impact of your work and what you deliver.

It's common to encounter clients who are sceptical about the value of your offerings or who are primarily focused on the cost. There are though ways that you can handle objections in a really positive way:

• Listen Carefully: Before responding, make sure to fully understand the client's or customer’s concerns. This shows that you are attentive and care about their specific needs.

• Reframe the Conversation: Shift the focus from cost to value by discussing the long-term benefits and the return of investment of your offerings. Explain how, although the cost might be higher, the long-term gains far outweigh the initial investment.

• Provide Comparisons: Sometimes customers may not understand the value until they see a comparison. Illustrate how your offerings compare favourably to less effective or more expensive alternatives.
  

• If your business allows, look at Offering Flexible Solutions: If price is a sticking point, consider offering solutions that can fit within their budget while still providing substantial value.

Building Confidence in Pricing Your Services

It’s so important that you feel at ease, happy and confident to stand by your pricing, to ensure you receive a worthy return for all your time and expertise and the enormous value you deliver, and this feeling of calm and confidence will come directly from really understanding your target audience and the value you provide for them.

You might be wondering how you can better understand your target audience and why it’s so important. I recently shared an episode on this exact subject, it’s episode 033 and I’ll leave a link in the show notes for you to listen to afterwards. Coming back though to finding strategies to help you feel truly confident around pricing:

• Keep a detailed record of successful projects, especially those where clients have seen tangible benefits from your services. These benefits can range from life changing solutions through to services that bring a huge amount of happiness. For example, a friend of mine who is an incredible picture framer, recently framed some of our artwork. Her services have brought a huge amount of happiness, so much so that the amount we paid is the most incredible value based on our enjoyment. Reviewing these such successes can reinforce your confidence in the value you deliver.

• Regularly use affirmations that focus on your value, I know not everyone loves affirmations, but they can really help. You might want to write these on post in notes and place them on your desktop. Such as "My work significantly enhances my clients' day, and my pricing reflects this value."

• Continuously improve your understanding of your industry and service pricing. Knowledge is a powerful tool for confidence; the more you know, the better you can justify your pricing structure. I do also encourage you to place your blinkers on, to really focus on what you are doing, your clients and what you provide, rather than looking at your competitors, but it is important that you are aware of your industry pricing structures. I wrote a free in-depth guide on this exact subject a few months ago, which is there for you to access, as I know it will help you further. You can access and download this free guide below.

• Go out of your way to continuously seek feedback from your clients, both positive and constructive. It’s so important to understand where you are providing value and where you can improve your services. And of course positive testimonials will help you to communicate your value more confidently to prospective clients and customers.

• Shifting from a mindset of fear about pricing to one of fearlessness involves embracing the value you bring to your clients and customers, and being unafraid to assert it. Spend time reflecting on the specific benefits that you offer through your brand. This deep understanding helps mitigate fears that your prices might be seen as too high.

• Be willing to walk away from potential clients who do not recognise the worth of your offerings. This readiness reinforces your confidence in your pricing.

• When faced with pricing objections, reframe these as opportunities to further clarify and demonstrate the value you provide, rather than seeing them as criticisms or rejections.
  

• Frequently practice pricing negotiations with a peer or mentor. This preparation makes you more adept at handling similar conversations with real clients and customers.

Actionable Steps

Here are a few steps that you can do right now, that will help you:

• Start by reviewing your existing pricing structure. Analyse how it compares to your industry, but focus on the unique value you provide beyond the average offering.

• Reach out to current and past clients for feedback on the value they feel they received from your services and products. Ask specific questions about the aspects they found most beneficial. Take time to do this, you’ll be amazed by how happy your clients and customers will be willing to help. I have always found previous clients hugely supportive, and I know you’ll find the same. Often we can feel a little nervous about interrupting people and asking for something from them, but in reality, as humans, we typically want to help, and it’s actually really lovely to be asked. It makes you feel worthy and that you can contribute to something, so don't let the feeling of not wanting to disturb someone put that off you reaching out.
  

  There’s a great episode I recorded recently on how you can grow your business through testimonials, it’s episode 028, and like with all the episodes and the guide I have mentioned, I’ll leave a link in the show notes.

• Take time to analyse your costs. It’s essential to ensure that your pricing not only covers your costs but also provides a profitable margin. Remember to factor in both direct costs (like materials and time) and indirect costs (like marketing and administrative expenses).
  

• Clearly articulate what makes your offerings unique. List the key benefits your clients and customers receive and why these are important. This will help in communicating your value effectively.
  

• If your offerings allow this, it’s a great option to develop pricing tiers based on different levels of service and products you offer. This helps customers choose the option that best fits their needs and budget. I go into this in a little more detail in the free guide I mentioned.
  

• And if you are updating your pricing, clearly communicate these changes to your clients. Explain the reasons for the adjustments and the additional value they will receive, ensuring transparency and maintaining trust.

There are also two books that I would love to recommend:

Pricing with Confidence by Reed Holden and Mark Burton which offers strategies for pricing more effectively, focusing on understanding the value to the customer.

And “Pricing Creativity: A Guide to Profit Beyond the Billable Hour" by Blair Enns. Which is specifically tailored to creatives, looking to price their services based on value rather than time. He provides a compelling framework for thinking about pricing in a way that emphasises your work and worth.

Conclusion

As we come to the end of the episode, let’s do a quick recap. We began by understanding the critical importance of recognizing your unique value, which sets the foundation for how you price and present your offerings. We discussed strategic approaches to pricing, emphasising the shift from time-based to value-based pricing, which aligns your fees more closely with the outcomes and benefits provided to your clients.

We also covered effective methods for communicating your value, ensuring that potential clients see and appreciate the dedication, expertise, and personal attention you bring. By focusing on clear, impactful language and addressing client-specific needs, you can enhance how your services are perceived and increase client engagement.

Finally, you have actionable steps to help you reassess your pricing strategy and refine your offering communication, including gathering client feedback, analysing costs, and communicating any pricing changes transparently.

Next, I’d love to hear from you! Share your experiences, challenges, or questions about valuing and pricing your services with me. You can send emails to news@philippacraddock.com or send me a DM on Instagram. I would love to hear from you and help wherever I can.

As a reminder, your value is unique, and your pricing should reflect that. Thank you so much for spending your time with me today- it truly means the world to me. Your presence and engagement not only enriches the community we are building, the one that you are very much part of, it also reinforces the incredible impact you can make with your unique knowledge, experience and skills. Remember, you have something special that no one else can offer, and it’s your right and responsibility to honour that value.

With immense gratitude and huge love,
Philippa x