money mindset

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Your Prices Matter, Here’s Why

When it comes time for you to price your services or products, you might find yourself at a loss. There are all kinds of pricing formulas out there. Some involve complicated math and some that just ask you to consider wholesale versus retail pricing. My personal favorite way to determine prices is to set income goals informed by the purpose and the plan you have for the money you earn from your business.

This month, I’m going over some financial mistakes women I’ve talked with recently first made in their business, and how to correct them. Let’s dive in:

The Mistake

This woman I spoke with listed not pricing her services high enough as her biggest financial mistake. She priced them too low initially. After realizing this, she found it difficult to raise her rates, because her first clients expected her low prices. She struggled between raising her prices and earning a wage that was too low for her needs. 

The Solution

If you are just starting out and are about to price your products – congratulations! You can take preventative action to make sure this doesn’t happen to you. The most important thing to do first is to establish your money why – your purpose and plan for the money you earn though your business. Where will it go? What will it do? An important part of this process is looking through your expenses and determining how much your business will support you with them. Once you’ve established your money why, you’ll be able to set income goals based off this information, so that your income is truly able to cover your living expenses. Once you know how much money you need to make, it’s easy to figure out how high your prices need to be.

Ask yourself a few more questions: What products or services are you planning to produce and sell most often? How much time, labor, and supplies will go into production? Account for those costs in your pricing formula, and make sure the answers are what you want them to be. If you’re planning to make most of your money from custom embroidered portraits, but you actually hate embroidery, maybe you’ll want to tinker with your profit model a bit. After this inquiry, you’re well on your way to pricing yourself well. For more resources, check out this article I wrote about my interview with Megan Auman.

If you’ve already priced your products and wound up in a similar situation to the woman above, you can still double back and figure out your true income targets and prices. The real challenge comes in actually implementing a rate change. Before you do this, it can be helpful to do some mindset work. Raising your rates can be a scary prospect that brings up all kinds of emotional baggage, but if you work on it, you can get to a point where you feel settled. Then, go ahead and raise your prices! You deserve to be comfortable and make a living wage. After all, isn’t that why you went into business for yourself?

I hope you found this helpful! I’m doing a series on financial lessons learned from business in honor of Financial Planning month, so stay tuned. And if you enjoy these thoughts, I wrote a lot more about planning and financial lessons in this month’s newsletter. Read it here and subscribe if you wish – you can unsubscribe any time.

☮

Angela

Image Source: Jason Blackeye

Claim Your Power

Are we afraid of our own power? One of the things I absolutely love about Barbara Huson’s book, Secrets of Six Figure Women, is that it asks us to face this question. In a society where we are often trained to take lower pay and funneled into “helping” professions, our earning potentials are often restricted, and we participate in the repression of our own power unknowingly. Some would argue the drive to help and caretake is natural for us. Barbara pulls a quote from Fortune of Oct 2000 which reads, “Women feel powerful when they are making a difference and expanding their own capabilities.” Naturally, we gravitate towards improving the world, but we can do this while also pursuing personal power and security. 

Every time you leave the beaten path and aim for exceptional, every time you silence your fear and speak with your own voice, every time you stop acting small and start taking up space, you are owning your power and emancipating others to follow in your footsteps.

Financial Security Is Power

Power does not require money, and is not exclusive to it. However, if you have the financial freedom  to leave a job, leave a spouse, take time off, give money away, and allocate financial resources as you please, that can only add to your personal agency. Money gives you choices. Those choices can allow you to step into every part of your power.

When we claim our power in this way, we raise the stakes in our lives, and stop playing the small game.  Barbara writes,“It’s not what we have but what we do with what we have that gives us or denies us financial security.” Whatever we choose to do, we can do more easily and powerfully with financial security. 

Serious fear underlies female passivity around money. My post on wealth-building may have stirred up some of this fear for you – and it’s exactly why so many of us stall on our way to building our assets. This fear is understandable. We receive many negative messages about powerful or wealthy women. They are often the villains in animated films, and there are no positive words for powerful women. The ones that come to my mind are “bitch” and “ball breaker.” This desperately needs to change, and it starts with us as we choose to turn against it. 

Claiming your power and building financial security may be uncomfortable or cause conflict. It means rocking the boat, saying no, and not always being liked or welcomed. I believe that, in the long term, these things are a small price to pay in pursuit of your own freedom and power. 

Claim Power For Yourself and Others

Claiming our power is an act of self love. When we honor and value ourselves and have the bravery and financial security to live our desires – that is real self love. This love ripples outwards, and makes a positive difference in the lives of those around us. By striving for what we really deserve, we can inspire and pave the way for a new generation of people ready to do the same. When we have the resources to donate to causes we agree with, we can heal the planet and help others achieve their dreams. When we claim our power, we can also extend that power to others. 

I hope that this post inspires you to reach for your dreams – you truly deserve to have the financial security you need and the agency you want. If you’re interested in working with an accountability partner to help you get there, you know where to find me! Check out my Services page and schedule a call. This post is the fourth in a series I did on Secrets of Six Figure Women by Barbara Huson. You can read my other posts in the series on mindset, action, and wealth building at the links!

Angela

 

What’s Your Money Mindset?

If you got my newsletter this month, then you know that I’m deep-diving into Barbara Stanny’s Secrets of Six Figure Women: Surprising Strategies to up Your Earnings and Change Your Life. By doing this, I hope to lead us through a month of investigating our own earnings and making sure we’re earning what we deserve! This week’s post is about mindset, the first ingredient in that process.

Check In

Barbara interviews six-figure earners and contrasts them with women she dubs underearners.  One of the contrasts that is ever present between the two is a difference in mindset.  In her workshops with underearners, she uses a great exercise that I would encourage you to explore for yourself.  She asks them to complete this sentence:  People with money are _______________.  If this as well as the title of this book bring up negative emotions, you will need to change this story before you are able to change your relationship with your earning potential. 

I mentioned in my newsletter that I don’t believe that we all need to strive for a six figure income, or even that money is a measure of our success.  But as business owners, if we are not able to support ourselves through our work, we will find it impossible to continue sharing the gifts that we have to offer.  I believe that we need to shift to an abundance mindset. What do you think of when you think of the word abundance?  I feel that this word includes many things: being grateful for what we have now, for what the future holds for us, for the gifts and talents we are able to share, the connections that we have to other people and the money that our society uses as a measure of exchange.  Unless we include money in our desire for abundance, we will not be able to increase or even feel deserving of our earnings.

My Mindset

I have been exploring my own money mindset recently. While I thought I had a positive relationship with money, I still found that I had some blocks as well.  Because our society seems to measure a person’s value by their salary, it is easy to base your self-worth on your income.  In our household, my husband earns the money that we base our lifestyle on. When I truly began exploring my mindset, I found that I was seeing my earnings as “insignificant” in comparison to his.  When I began to separate the value that I deliver to my clients from my worthiness as an individual, my outlook on my potential impact also changed. 

The Deciding Factor

The path to making this mindset shift towards abundance includes gratitude, affirmations about your worth, and a decision to make a change.  Many of the six-figure women interviewed by Barbara started out with negative feelings around money, but they recognized that fact, made a decision to change and then put their new attitudes into practice.  The fact that you are reading this blog about money already shows your willingness to change. That is a great start!  

I hope you found these words about mindset helpful. Next time we will be talking about actions you can take to improve your earnings potential. If you want to talk more about mindset, I’m your gal. Check out my Services page and book a call!

Angela

Image Source:  Nathan Atkinson