“The business world is driven by the desire to increase three elements: market shares, sales revenue and, of course, profitability. Pricing is the key player in any strategy related to the growth of these three objectives” . Mohammed Nosseir, Senior Marketing Advisor, Simon-Kucher & Partners, Middle East

Determining the pricing structure of the intangible services provided is a real challenge for Solopreneur consultants. What is the value of our time and experience in the open market? What happens if we promote our services, set the price and no one hires us? Should we reduce the rates of our projects? Can we ever raise the prices?

Customers are motivated to spend as little as possible on the products and services they need. However, they have been known to pay premium prices when they “feel” that a particular product or service offers exceptional value. That value can mean an expert solution to a business challenge; a durable product that performs well with little maintenance; the ability to meet a deadline; or other factors that have meaning for decision makers.

Often different customers will have different priorities that define what is valuable. The Solopreneur’s job in the initial face-to-face meeting is to find out what the client feels is important. That knowledge will accomplish two goals:

• You will know the expectations that must be met to justify a premium price.

• You will know how to price, based on the time or other resources that will be dedicated to meeting and exceeding customer expectations, and you will understand the urgency of customer needs, which affect your price.

Chances are, there are standard benchmarks and high-value service indicators in your industry and these should be incorporated into your marketing and operations, along with other layered value-adds as needed. Knowledge of what competitors are doing would also be helpful, but it is difficult to learn how competitors provide their services or price them. However, it is advisable to choose three or four to investigate.

Visit websites to learn what services your competitors offer and how those services are described and packaged. Then you can better identify the potential competitive advantages of what you have and find a way to describe your products.

It may sound like an obvious no-brainer, but part of your premium value-add that will be reflected in your pricing strategy should be your positive attitude and willingness to help prospective customers find the best solution for their business needs. Kindness and a genuine desire to offer good service go a long way in life and in business. Displaying a good work ethic is equally important.

For example, when you’re on a task, pay attention to emails. While I don’t recommend that you be required to respond to emails a client sends at 3:00 am (unless it’s a high-revenue, time-sensitive project), check emails until 8:00 pm and resume at 8:00 pm AM. If you can anticipate customer needs, so much the better. They will think you are a hero and will be happy to pay for the pleasure of doing business with you.

Step by step, client by client, focus on exceeding expectations on every project, building the trust that leads to a respected brand (reputation) like you. You’ll receive referrals from satisfied customers, and you’ll also be able to make referrals on their behalf, improving your brand each time you do so. Good brands create good word of mouth and that supports and justifies premium pricing.

As Mohammed Nosseir concludes, “Pricing has been, and will continue to be, the most difficult element in the marketing mix family… A proactive pricing structure will help companies… maximize their profitability.”

Thank you for reading,

Kim