How to Determine Your Pricing When Starting Your Business

What are the mistakes to avoid if you want to live the entrepreneurial dream rather than the nightmare? First off, you have to assume that you’ll make mistakes. Everyone does. There are eight critical mistakes that most entrepreneurs make when starting and building their business. Today we will focus on mistake number five from Entrepreneurial Leap.

Not Charging Enough

It is extremely common for companies not to charge enough for their product or service. Most of the time, what lies at the root of this is fear. I have lost count of the times I’ve urged clients to raise their fees. Whenever they do, they never skip a beat, and become more profitable.

Dan Sullivan has a great rule of thumb when choosing your pricing. He suggests that you think about the number that scares you and then add 20 percent.

Casey Brown is an expert on pricing. Watch her very insightful Ted Talk:

Next Steps

Take a minute right now to evaluate your product or services value. Find that magic number that scares you, add 20% and write it down.