426. Why basing your pricing on your worth is not a good idea 🤪

On this episode, Nellie chats about why you shouldn't basing your pricing on "your worth" is not a good idea.

Nellie argues against pricing digital products, services, or programs based on personal worth, citing it as a common struggle and a flawed approach. She emphasizes that pricing should be based on the product's value, time investment, and deliverables, rather than personal worth. She suggests removing oneself from the pricing equation to avoid emotional reactions to rejections. 
Nellie suggests understanding the costs involved, including time, software, and tangible goods, to ensure profitability and long-term success. She shares her own experience with pricing a custom package and the importance of setting a business model for scalability. Pricing should be about the product's value and accessibility, not personal worth, and that rejections are part of the process.


We will touch on:

• Pricing Challenges in the Digital Space
• The Complexity of Pricing Intangible Services
• Impact of Pricing on Self-Worth
• The Importance of Profit and Long-Term Success
• Scaling and Pricing for Accessibility
• The Role of the CEO and the Teacher
• The End Goal and Pricing Strategy
• Handling Rejections and Moving Forward
• The Importance of a Naked Budget
• Final Thoughts on Pricing and Business Success

Transcript

Unknown: 0:01

Why pricing your programs, your products, your services, off of your worth is actually not a good idea. Hear me out. Just hear me out, because I know, like, there's so many sayings, like, you know you're you're worth it so much like the the word conversation is a big one, so just hear me out before you like, jump to conclusions, because this was an intuitive download. So someone needs to hear this like, I've really been like, honoring my intuition and speaking, speaking life into it, speaking energy into it, because there's someone out there in the online corners of the world that somehow are stumbling on this video. And there are no accidents, someone needs to hear this. So when you have digital assets like a digital download, a course, a membership even like services online, like anything that's not like tangible goods. So it's either services or like digital products, programs, etc. The pricing structure is actually really hard for so for so many. If I have to say, the one question I get the most is I'm struggling with pricing. I'm struggling with pricing. I'm struggling with pricing, like it is, by far, for sure, one of the biggest questions I get, and like, the thing that people just have a really hard time with, because in like, traditional pricing, you know, when there's, like, cost of goods sold, and, you know, all of those things, typically people either double it or times it by three. That's like, a really, like, well known thing, more like, in like the boutique space type of world, it's a lot easier to to decide the pricing because there's like physical, tangible goods, but when it's like something like your time, like a one on one coaching call or 100 page playbook, your version of what you think it's worth and my version of what I think it's worth are probably very different, and it's so much harder to know who's right or wrong, because there's no, like, hard cost. Like, yeah, there's time involved, and maybe, like, software involved, but it's just, it's, it's such a harder thing. So I do want to acknowledge, if you struggle with pricing, it is, a it's a real thing. You are not alone. It is literally, like I said, it's literally, like the thing that I get asked the most. So I want to specifically talk about why pricing it off of your worth is not a good idea. And here's the thing. So if you price it off of your worth, meaning like, Oh my gosh. I think you know it's it's worth this, because my time is worth X. That is tricky, because, let's say you decide your price is $1,000 for an hour of your time, and you're like, I know I can get a great return for somebody for an hour of my time. I can help them, like, literally collapse time. You know, they can save their they can save so much money. They can make so much money. Obviously, it's always on them when it comes to, like, the actual execution, but you feel good pricing it off of that. So when it's so tied to your worth, it can actually become a huge mind, because the minute that somebody says, Oh no, I would never pay that. Or that's too expensive, or, wow, I wasn't expecting it to be that price, like any of those types of comments can really slow you down. And it's not any like it would be any amount of money. It could be $100 not $1,000 and someone out there would say that. So the price is important. But how do we get to the price is the most important conversation, because when we are getting to it just based off of you, then when someone says, No, you as the creator, can be like, it's like a dagger in the heart. You're like, Oh, right. And then if you have rejection sensitivity, it can really mess you up, like it can really slow you down. You can get in your own head. So a better thing to do is to pull you out of the equation and really look at what's the strategy with the product, the program, the service. What are like the time investment involved? Um. Even if it wasn't you. But like, let's say you were to hire somebody, because we do want to turn a profit. So like, for example, my client that I had in Vegas this past weekend was a very custom package, a celebration trip was included in her package. When I was basing the pricing off of her whole package, it had nothing to do with me. Like, yes, she got time with me, not only during the trip, but leading up to the trip. She got done for you, social media content with my team. So I literally pulled myself out of the equation and said, Okay, what is it going to cost to take her to Vegas? What is it going to cost me to have a team member fulfill her deliverables? And I was a factor because, yes, I have time involved, but it was so much less about me, and so much more about what is the actual product that I am presenting to her and making sure not only it's a win for her, but it's also a win for the business, both parties do need to win. Like if you're constantly losing money with every product, it's never going to change, right? Like you need to be profitable with every single sale, because it makes it so much easier to win. Even if that profit is small in the beginning, it's better than a negative, and your time is a part of that. Because if there are time deliverabilities, and the profit is either in the negative or very small, then again, it's still, it's still not going to set you up for long term success. So like, you are still involved in the pricing decision, but it's so much less about a worth conversation, and more so about the actual deliverabilities, the nuts and the bolts. What are they getting? What is the cost involved in that, both like tangible goods, time, all of those things, any software that you have involved and almost pretending like it is a tangible product? Oh, I just saw 777. That's cool. Like you are a boutique, or you are, like, a manufacturing skin care, right? Like you're manufacturing skincare, like they are able to, like, if you ever watch Shark Tank, they're able to really get some hard costs because it's a little bit easier. And equally, these types of businesses that are more non tangible actually do have a can have a higher profit margin because you're not having to get things shipped from, you know, all over the world. You're not having to have a brick and mortar location. So you do have a huge advantage from a pricing standpoint. And so you really understanding the nuts and the bolts is the most important thing. Like that way for every sale, you're going to feel good about it and you're going to turn a profit. So like when I, when I presented the offer to my client, oh my gosh, almost a year ago now, because it was a it was a longer term package. I was okay if she said no, you can't price things based on if people are going to say yes or no. You've got to price it off the nuts and the bolts the time involved of really understanding. I'll be good if 10 people say yes, and I'll equally be good if 200 say Yes, like that is a way better perspective to look at your pricing, to make sure you're covering your cost, you're turning a profit. It feels good energetically, not just your worth. Your worth is infinite, like no amount of money, like no amount of money, no matter if it's a product, a program, a service, will ever, will ever live up to your worthiness truly and like the best way possible, because your worth is infinite, there's no amount of money that somebody can pay you that will fulfill your worthiness. And so when we actually take that out of the conversation, the game changes, because you're really looking at this from a CEO perspective, a holistic, energetic perspective of like, what feels good? I actually have been feeling so much better about lower ticket, I have been just getting so much positive feedback from people, and so guess what? They don't get access to me the way that a one on one does, and I've had to really put some boundaries in place with that, because it. Is lower ticket and so that that, like the as the product is not presented as you get every answer, like in my DMs answered to you, right? Or you don't get a one on one call with me. You don't get a Vegas trip. So I'm very transparent from the beginning of like, this is a very affordable product, like digital product, but please understand that it is not one on one, direct coaching with me. And so sometimes people haven't like even though it's very clear, you know, I've had to redirect people and be like, hey, you know, go into the Facebook group and those, those moments are not easy for me. I really don't want to do them. But again, to stay in alignment with it as a CEO, I have to, like I have to, it's it's not that's not what they're paying for. And so I'm happy to answer their questions in the group, so everyone can benefit from their questions and so it that's a win win, right? So it's always just making sure we are creating a win win equally. If you do want to scale your business, I really want you thinking about, how can you set your business model up for scaling success today, not later today? So, like, we've been putting, like, some of those foundational pieces in place of, like, you, like, I, it's very rare that I have any one on one, like, like, after, like, obviously that weekend I don't like, someone asked me, they're like, Can I do a trip like that? And I'm like, nope, not right now. Like, I don't have that offering that was a very like special offering. It was a one timer. And now I've been moving more into the direction of, you know, scaling the wealthy mama movement, which requires a different version of me, and therefore focusing on the business model to make sure, you know, we're really setting everything up for scaling success so that so we're not waiting like this has been. And I think that that's another misconception, is people think that it happens so fast. And just let me, let me be the first to tell you however long you think it's going to take? It's probably going to take twice as long, if I'm being honest. So we've been working on our first 100 members in this, you know, revision of, you know, the evolution of the brand, and I've been going slower because we're working out all of the kinks, and I'm okay with that. Like, I've had to really humble myself that, like, I don't have these big, grand numbers, but what I do have is I know every single member, like every single member, I know the ones that come even better to the calls. And like, I know their business, and I know their products, and like I think about them and I asked them questions, and I've been working on my health and well being and so we are going slower, and that has been very humbling. But I'm so proud that we've chosen, you know, to scale at a very holistic pace that I want to prove to other women like you, can have a huge, impactful business and not sacrifice you, your family, your morals, like all of the things and so the pricing, like, if you look at the pricing of our membership, it should be so much higher based on what you're getting. So, like, the pricing doesn't make sense to you know, if I, if I priced it just on my worth, it would actually be out of alignment. But I didn't price it on my worth. I priced it on accessibility, scaling impact. So that way, you know, more people can get this information less of my time. So that felt very sexy to me, because I needed, I need to work on the business like I definitely have a tendency to go into, you know, all of our students businesses, or my clients businesses. And rightfully so, like that's a part of the equation. But you know, there's a big difference between being the teacher and being the CEO. And I've really been practicing putting my CEO hat on. I am much more comfortable in the teacher role, if I'm being honest, the CEO role still kind of terrifies me. I never have felt my age, like I felt so young, but also like an old soul at the same time, it's a very odd thing, like, even when I go drop off the kids at school, like I feel like I'm an imposter. I'm like, I don't feel old enough, like, I promise I'm a responsible human. And it's so, so weird to me, and just interesting life, right? Life. Anyways, so I'm getting more comfortable in the CEO role, you know, managing the finances, managing the team, managing the business model, you know, deciding on software, like I did a lot of research in my free time this past weekend where it was like, Okay, what, like, you know, for improvements on our software, like, what makes the most sense, and just pros and cons and not making immediate decisions, but like, sitting with it and all of the things. So, like, I wear a lot of hats, because I'm also the marketer of the wealthy mama movement, which is another hat. So there's, like, teacher, marketer, CEO. Those are like, my three big main hats, um, outside of being a mom and a wife and a human so it's a lot, it's a lot. And so, like, I am so grateful to go slower because I'm not wrecking my nervous system, and I'm really like working through anything that shows up that doesn't feel the greatest. So all this to say that the pricing actually becomes a lot easier when you work with the end goal in mind. So like my end goal right now is that we are fully a digital, a digital, like virtual school for everyday moms and so that means we're not doing people's social media. That means I'm not hopping on one on one calls like, if you think about like, the only way can really like, help my brain like conceptual, conceptualize. It is like, if you were to think about a traditional university like the the president of the university is not necessarily hopping on calls with every student. They may stop into a classroom, right? They may, you know, meet some of the teachers right, like they're still heavily involved, but their goal is to maintain the the brand right. Like to make sure that the overall big, the big vision, is being taken care of, and that truly is my zone of genius. Like, the big vision is I could live there all day, like that is really what I'm good at. And so doing pricing based off that is exactly why we're we're doing the offers that we're doing right now. And so I think it's just so important to start with. The end, in mind, understand your hard cost. I have really eliminated so many expenses as we are restructuring and and setting ourselves up for long term success to just eliminate some of the stress. Um, so I really, like, I call it the naked budget, like we have a very, very naked budget as a business, and that is by design. So everything is starting with the end in mind, and making decisions based off of that. And it's so much easier to make pricing decisions when you know the direction that you're trying to head, and you know the cost involved in all of that. You know, your time involved and and we're pricing it just so much way less on like, your worth it. I'm promising you, when you separate it, it like you are the deliverable, like, of it like, either it's a call with you, or you're doing somebody's website, or maybe you've made a digital playbook, or you have a membership, so you're still involved. But I almost want you to think about like it's not you as the human, because you as the human are like your your worthiness is infinite. So you as the employee of your business is very different, very different conversation. And so you understanding, like, Okay, well, what, what do I need to make hourly? And then you can factor that in to to the cost. You can also factor in is this one to one, one to many, because that helps, like, the fact that we have a group program, and we could literally, like, if 1000 people wanted in, in it today, we, for the most part, we could, we could handle that right, like, there would be some adjustments, but like the the program, the container, can handle that for how it's currently set up, which is by design. So we just want to be thinking about all of these things when you're pricing, so when you like, when people tell me no, it doesn't affect me anymore, like I got told no the last week. I can't even tell you how many times, and I'm like, okay, totally fine. Um, one person even asked if I could do a trade, and I said, Sorry, I can't. I don't do trades, right? And so you can just make these decisions so much faster. Or you're not going to get stuck in the energy of your worthiness when you do hear a no, because I'm going to be real with you. The more money you want to make, the more you're going to hear no. I'll say that again, the more money you want to make, the more times you're going to hear no. And it is a part of the process. For every No, you will get a guess. You will get a yes. And no doesn't always mean forever. It just means it just isn't the right time and you just moving forward is a way better use of your time and your energy, versus wallowing in the No. And so a way to help you do that is to not price it off of your worth. Remove yourself from it, start to look at it as a very like tangible product, and make it tangible in any way that you can. And you being able to say the price out loud is important as well. If you decide the price is $10,000 and you're shaking in your your boots as as they like to say, then that may not be the starting price, right? Like, I had a mastermind for years, and it it got up to$12,000 but there is no way I started at that price point. Like, was it already? It wasn't always worth $12,000 Sure, there's, there's masterminds that are triple that price. Um, but there's no way energetically, I could say that price. It wasn't it had nothing to do with my worthiness. It had me as like, if, if I'm going to sell it, what can I confidently talk about? Because that is also going to help it sell better. So just some things to think about. If you have any follow up questions, let me know below happy to answer them on Follow Follow up recordings, so make it a great day. Bye.