Many new entrepreneurs undercharge for their services when they first start their businesses. The idea that you might scare a customer away often leads to undervaluing your services and as a result undercharging for what it’s worth.
The key to eliminating this problem in your event planning business is being confident in your prices and charging for the pleasure of working with you.
Here are 5 tips to follow that will help you stop undercharging for your event planning service:
1. Stop reaching for the bottom
As a new Event Planner, you can feel like your skills and expertise are less valued next to experienced planners. This is not a valid reason for charging the lowest price possible or to compete with other Event Planners based solely on price. Think about it like this: It takes you just as much time to plan an event at $10/hr as it does at $20/hr. So why reach for the bottom of the barrel?
2. Know your value
Take some time to reflect on the value that you provide to customers. How much time do you save them? What opportunities are they able to take advantage of by hiring you (Spend more time with their spouses, for example).
Next, I want you to think about how long you’ve been in the industry. What unique quality and expertise are you able to provide to clients? Use these questions to differentiate yourself from other planners and highlight the benefits of working with you. Once you’re clear on your value, pricing accurately becomes easier.
3. Find the right clients
Think about your Red Velvet Rope Policy and the type of clients you are passionate about working with. Instead of lowering your price to accommodate discount shoppers, try finding clients who will pay the true value of your services, while appreciating your time and expertise.
4. Change your mindset
How we price our services can be a reflection of our money mindset. What this means is that you have pre-existing beliefs about what your services are valued, and if you don’t believe in your pricing how can a customer?
Take a moment to reflect on your answer to these three questions
Do you think your services are valued more than you’re currently charging?
If Yes, Why? and If No, Why not?
What’s the worst thing that can happen if you increased your prices?
5. Get help
If you’re still struggling to price your services correctly, find some support. Seek out a mentor or hire someone to help you create a pricing strategy for your business.