In this episode, Sam discusses the complexities of pricing for small businesses, particularly in service-oriented fields. She emphasises the emotional and ethical dilemmas faced by business owners when setting prices, the importance of establishing a viability floor, and the shift towards value-based pricing strategies.

Sam also highlights the need for diagnostics to identify underlying issues affecting pricing and business viability, advocating for a balanced approach that considers both accessibility and sustainability.

Takeaways

Pricing is an emotional decision for many business owners.

Underpricing can lead to chronic stress and compassion fatigue.

Establishing a viability floor is crucial for sustainable pricing.

Value-based pricing focuses on perceived outcomes rather than costs.

Sliding scales can increase access but need careful design.

Discounting should be a strategy, not a reflex.

Customer feedback is essential for refining pricing strategies.

Diagnostics can help identify pricing challenges and business viability issues.

Healthy pricing allows for continued support and improvement of services.

Fair pricing is not greed; it's necessary for long-term impact.

Head here to access the pricing guide Sam mentioned - www.25eight.co/quick-guide-to-pricing-for-small-business

Head here for our mini diagnostic - https://www.25eight.co/blog/discover-your-stage-of-business-growth-and-the-strategies-to-reach-the-next-level

Do you want to benefit from Sam's coaching and mentorship whilst building your growth strategy and strategic leadership skills?

25eight's award winning eight-week Next-Level Growth Program helps you get clear and confident to take your business to the next level, on your own terms and without burning out.

Find out more here https://www.25eight.co/next-level-growth-program

Sound Bites

"Pricing has leverage."

"Access models need design, not feeling guilty."

"Money isn't evil. It's an exchange of value."

Chapters

00:00 The Emotional Tug of War in Pricing

03:09 Understanding the Strategic Importance of Pricing

06:24 Establishing Your Viability Floor

09:07 Value-Based Pricing: Moving Beyond Cost Plus

11:43 Testing and Adapting Your Pricing Strategy

14:22 The Bigger Picture: Diagnosing Pricing Issues

keywords

pricing, small business, value-based pricing, cash flow, ethical pricing, service-based professions, compassion fatigue, pricing strategies, business viability, customer feedback