As a new business owner, we spend the most amount of our time trying to determine the best price for our product or service. We worry if it’s too high or too low, we worry if the price will attract clients and we worry if we can create a thriving business based on that price. Here are some of the mistakes we make, as entrepreneurs, when setting our price.

Undervaluing Expertise
We often look at our price and think “no one will pay that”. I know this is especially true for many business owners as we worry that we will be judged by others in our field and not for the expertise we provide. If you have numbers of years in the field of your business and or an expertise that is in demand, you can feel justified in setting your price higher.

We Can Do it Faster
Many of us base our price on how long it takes us to finish the job. After years of doing the task, we become very fast at completing this task. Instead of pricing based on how long we take to complete a task, we should be looking to industry standards (or at the least thinking about the time it takes the average person to complete the task).

We are Running a Business
We have overhead costs, unbillable time and other hidden costs that need to be factored into our price. For example, hiring an in-house assistant may cost $10-$15, but you can guarantee that the overhead costs can easily double or triple that cost. The comparison to our price as a business owner and the price of hiring staff needs to take these things into account.

The biggest thing to remember is that in order to ask a price and receive it, you must be confident … it is easier to convince a pending client to work with you and pay your price when you are confident in it. Otherwise a person is likely to think that they can “talk you down”.