February 12, 2022

357 – Why NOW is the Time to Get Your Pricing in Line with Racheal Cook

49 minutes

Do you struggle with how much should you price your product? It's a question we all struggle with.

If you’re not sure if you’re pricing your product properly … or already know you aren’t but haven’t reset your prices (which of course means higher) - then you definitely want to stick around and listen closely today.

We cover is why NOW is the perfect time to get your pricing in line. And you'll learn how to get this done and off your “I know I need to do this list” once and for all.

We cover other business growth points too.

Think back … you started your business for freedom and flexibility, right? Can you say you have that now? My guess is not.

I think this is the biggest myth about running your own business. The reality for most is that the opposite happens and we have less freedom and are tied down to our business if we’re not careful. But guess what? It doesn’t have to be this way.

Racheal is on a mission to end entrepreneurial poverty for women. Over the last 10 years, she’s helped thousands of female entrepreneurs design predictably profitable businesses without the hustle and burnout that doing “all the things” inevitably provokes.

Her passion is supporting savvy, soulful women as they implement the strategy, systems, and support structure that will uncomplicate their business so they can work less and live more.

How Much Should You Price Your Product?

In the product world - profit margin is really important.

The #1 pricing mistake product-based business owners make is not building your own labor and time into the price. <-- Listen in for more details on this!

Be very aware of how long it takes for each individual product to be produced and then give the dollar amount to that. Then, if you hire someone else, it's already built into the price.

Put yourself in your customer’s shoes. Really think about what they value the most and focus on that. <-- Tune in for more on this!

Once you determine what your correct price should be, it may take a little time to shift to it. There are a few ways to do it:

Most people make this a much bigger deal than it is. For most, you can just change the price on your website or catalog and 98% of your customers won't say anything.

To reward loyal customers, give them an opportunity to buy before you raise the price. These sales often go very well and result in a good bump in revenue.

If you need to increase the price by 30%-50%, you can slowly stair-step the price up over time rather than doing it all at once.

Remember - most people who buy handmade items are NOT super price sensitive. So, the people who comment on price or ask for discounts are not your ideal client. Focus on people who value the time, energy, and craftsmanship that goes into creating handmade products. <-- Pro tip!

Other pricing issues to consider. If you offer free shipping, that comes off the top of your price. Eliminating free shipping will instantly increase the price you charge.

If you haven't raised your price at least 10% since last year, you're losing money due to the cost of inflation.

Internally, look at your cost of goods. Can you reduce the cost per item by purchasing supplies in bulk? Or finding alternative materials that cost less?

Now may be the right time to raise your price because prices are going up everywhere.

Listen to the whole conversation for more about how much should you price your product!

How To Get Time Back As A Handmade Business Owner

Step into the CEO role. Be the boss of your business.

Be more intentional in designing your business.

Know where to focus your time and energy. Then evaluate what you can delegate to claim back time you can use to grow your business.

Anything you do over and over again is an opportunity to document it and create systems (e.g., answering customer service emails, etc.).

Even if it only takes you a few minutes to respond to an email, it can take hours out of your day. Build those email templates so it’s easier to bring somebody on for your team.

If you are making handmade products, know when you need to get support. Let your team manage inventory and shipping.

You can expand your capacity to sell more as you train people in the production of your product. Product quality can be maintained by proper systems in place.

How To Market Your Handmade Business For Growth

Find a way to fall in love with marketing and sales. That is where your growth will come from at the end of the day.

Spend more time on marketing and sales activities each week to stimulate growth.

You are the asset of your brand. Remember the story behind why you started this business or why you created this product.

Don't focus on what’s trendy and popular. Stay focused on where your people spend time.

Figure out how people search for a product like yours.

If you have something that is search-specific, there are so many opportunities to get out in front of your ideal customer. <-- Lots more detail on this in the episode!

When things are changing - look ahead and focus on the opportunities ahead rather than being scared of the change.

Listen to the full episode for so much more on how to determine how much to charge for a product and grow your business!

Resources Mentioned

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Racheal's Contact Links

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Thank you so much! Sue

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By Sue Monhait

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