EPS 246 - The 1 thing that is keeping you underearning - SUZ CHADWICK - Business & Mindset Coach. Speaker

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When it comes to your business it's so important for you to make decisions that help you build a profitable business so that you can stay in business and not break yourself hustling.

So today I wanted to talk about a word that I hear a lot that I think can keep you broke as a business owner and under-earning.

And that word is Affordable.
Now you know I like to look at the definition of words.

If something is affordable, it means its price is low enough that you (or most people) have enough money to buy it.

I want to break this into 3 key mistakes you're making when it comes to thinking about ‘being affordable'. Let's look at this in an objective way.

Mistake 1 – You're pricing for them and not for you

When you're pricing your products and services there has to be an equation.
That simple equation is – how much do I want to earn?
Once you know what you want to earn then you have to ask yourself, how many do I need to sell in order to earn that amount?
Then with my tax, superannuation, operational costs, pay etc – what does the price need to be.

That's where you start.
Once you get there, then you need to look at the market.
When I say look at the market, I mean you have to decide where you want to position your brand. If you're Kmart you're not going to charge $5000 and if you're Chanel you're not going to charge $5.

So you have to go through these questions and get practical and clear on what you're building, how much you NEED to charge and then what you need to do for the price to not be an issue for the people you're targeting.

If you need to charge $3000 then you need to target your message, branding, and marketing to people who see it as an investment and who are fine with that. Obviously being strategic with payment etc can make it more accessible.

And that's how I want you to think – not how can I make it affordable but how can I make it accessible. I charge what I need to be profitable and they can access it in different ways that work with their budgets and needs.

Mistake 2 – Thinking you know what affordable means

Affordable for who? For every one you've ever met or for everyone in the world?
When you're talking about affordable you're making an assumption about what people can afford. You're also making an assumption about how much they value something.

Affordable is relative to desire, want and need.
If I want to go overseas on holiday and I haven't been on holiday for a long time then $5000 or $10000 could be affordable for a family of 4, in fact it might be cheap when you take everything into account – like flights, accom, food,

Whereas that may not be affordable for someone else.
So how do you decide?

Knowing the audience you want to work is a great place to start. But the other thing that I learned from my business coach years ago is to stay out of your client's wallets.

Why? Because if someone really wants to work with you they will do what they need to in order to make that happen.

Mistake 3 – Thinking that what you would buy is what your clients will buy.
You don't have the same problem as your client, so your thinking, “I wouldn't buy that or pay X for this” makes no sense. If you don't have the problem that you solve now of course you won't pay money for it.

But you would pay to fix the problem that you have.

This is a Money mindset that you need to break and understand.

There are people who see things as an investment and others who see them as an expense.
You have to focus on speaking to people who want to invest in themselves and understand the value of that.

If you think you to convince people to pay what you're charging you'll exhaust yourself and to be honest that's just not much fun. This is also where people burnout. They keep trying to make enough money because they want to be affordable (instead of accessible)

 

EPS 246 – The 1 thing that is keeping you underearning

2022-11-30

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