Emily's question was awesome and I am guessing many of you might be asking the same, so I thought I would uplevel the answer for everyone. In case you missed her post, it said:
"I'd love to hear more about balancing "charging what we're worth" against charging what we think the market will bear. In my experience, the magic number is somewhere in the middle, but it's really hard to find that sweet spot.
For me personally, the idea of "adding a zero" seems a little daunting! I think we as women sometimes have a hard time pricing our products and services because we undervalue what we're really providing. Is this something you've experienced in your own professional life and, if so, how did you handle it?"
OK Momentumers, here's the scoop. Conventional thinking would have you believe that pricing via what the market will bear is the way to go. However, the exact opposite of that is one of the key secrets to growing to a million faster.
Small businesses should not compete on price. It's a lose, lose because if you do, you've commoditized your business and are competing with pretty much everyone else. Not to mention the fact that people don't want to buy middle of the road - they either want cheap or premium, so why not create something of high value and charge for it?
Not to mention the fact that small businesses don't have the marketing budget to compete with other low and middle-cost leaders, so all the more reason to differentiate yourself and then get paid for it!
Make sense? Weigh in peeps!
@JulieatTheWELL I completely agree about price competition. Our products are Certified Organic, Vegan, and Kosher (with certifications that are very costly), also Nut, Soy, Dairy, Egg, and Sesame Free. So yes, our products do not start to compare to the others in the grocery isle, but yet we still have to keep our prices competitive.
And I most definitely agree with not having the marketing potential to keep up with the big corps. Most advertising can be very costly.
@jessbru99568, I LOVE that you are "competing" at a premium level... that's where all the goodness is! And even then, continue to think out of the box. There are VERY high-end retailers that will sell the same product for even more, so push beyond your comfort zone and see if you can go to the next level... Well done!