Transcript
Speaker: Do you desire to turn your passion into income? Connect with other creative souls who also dance to the beat of their own drum?
Speaker: I'm Marie Nicole and I'm devoted to combining beauty, uniqueness and connection in everyday living experiences. As a creative professional and Dharma coach, I help people connect to the truth of who they are and facilitate them in embodying their uniqueness. It is my hope in this podcast that I inspire you to live your life on your terms and earn your income through being uniquely you.
Speaker: After all, it's the unique thread that we each contribute to the collective tapestry that creates the whole.
Speaker: If there's one thing that makes people starting a business squirm, it's usually pricing, but it's the one thing that you can't avoid addressing and you really can't afford to get it wrong because without profit, your business is not able to sustain itself and it's not able to grow.
Speaker: In my experience of both running a service -based business and then product -based business the issue of pricing remains the same. It's the confidence in asking for the price of the value you provide. As a newbie photographer I looked to those who would tread the path before me asking for guidance. At first I sought advice from the connections I made through the professional photography lab that I worked with.
Speaker: on how to structure my pricing. I was told to offer a lot for as little as possible just so I could get the experience and raise my prices once I gained that experience, which sounded fair at the time. But then I started to notice that the hours of work I was putting in for the money I was getting in exchange for both my time and my skills did not equate. And when I joined the Australian Institute of Professional Photographers, I attended every workshop possible to learn from the higher end photographers who were offering a quality service
Speaker: with a price point to match. But I didn't feel qualified to increase my prices too much, so I continued to keep my prices as low as possible, but increase the value and the quality of my offering. However, what I did was underprice myself, and it was very difficult to increase my prices once I became known for what I did as affordable in price.
Speaker: The results of this was that I was working for very little money. I was paying staff to help produce a quality product for the customers that I was serving, but I myself was not taking home enough of an income to cover my personal living expenses. I was effectively a slave to my own business. It also became quite apparent that the clients at the lower end of the market I was serving were a lot more work than the clients at the higher end. So not only was I not making much on the packages that I offered them, they were draining my energy as well.
Speaker: So I ceased offering those lower end packages and concentrated on the high end. The result was that I enjoyed working with these clients and they valued the work that I was doing. Unfortunately though, I learned this lesson too late in my journey. I'd already been running my photography business for seven or eight years when I was completely burnt out. All of those years offering too much for way too little. So after nine years of trading, I had no choice but to close the business.
Speaker: As I was so unwell, I simply couldn't continue. But I was glad that I finished up that business serving clients that I thoroughly enjoyed working with, and who valued the work that I did. As I shifted into a product -based business creating screen -printed wares, I was faced with the new challenge of how to price products so I didn't price myself out of the market.
Speaker: You'll notice in creative industries that you have a mixed bag of makers and designers who sell alongside of you from those who do it purely for the fun of it and those who do it to earn their living and everything in between. It makes it really difficult to have an industry standard set. You know, that you have to set the standard for yourself.
Speaker: and you have to stand behind it. If you choose to work with quality materials that are ethically sourced, environmentally sustainable, then the price point needs to reflect this. It simply cannot be compared to the person next to you using cheaply produced, unenvironmentally friendly, unsustainable raw materials. The same challenge existed in the photography industry.
Speaker: Yes, Uncle Bob has a nice camera and takes nice photos from his holidays, and he is offered to take your photos for a much lower price. But Uncle Bob doesn't have the professional skillset that you've developed that has led you to opening your own professional photography studio, paying weekly rent to showcase your work and meet your clients in, plus all the hours that you've put into honing your craft at a professional level.
Speaker: There are a few things to consider here when it comes to setting your prices. And it's not just about the cost of raw materials or an industry standard hourly rate. As someone doing business to the beat of your own drum, you're probably offering a service that doesn't even have an industry standard set. And you even can't find a job description that sums up what you do that compares apples with apples. So you need to consider things like how much,
Speaker: Have you personally invested in your unique skills? What courses have you taken? All those online courses, certifications, even the coaching and mentoring you've paid for to deepen your knowledge and understanding and increase the network of people that you have to lean on when you need resources that you don't have under your own belt. Have you ever taken time to calculate how much you've spent on your learning?
Speaker: Over the last seven years alone, I've attended a women in business retreat, completed graduate studies in collective entrepreneurship, completed Marie Folio's B school, got my sole purpose coaching certification, and I'm now taking a voice activation course.
Speaker: let alone the previous 18 years when I attended night school, completed my degree, paid to work with coaches, and so much more. And on top of that, when I think about all the books that I've purchased, read and reread, the professional services I've invested in to run my business, the staff I've paid, the commercial rent, and the apps that I use that have monthly subscriptions that enable me to run my business efficiently and professionally, and yet I still have people walk into my shop and ask,
Speaker: If I bought more than one, would you offer a discount? If you ever get asked this question, try this for a response. How often do you turn up to work and say to your boss, I'm going to give you 110 % effort today, but I only want you to pay me 80 % of my wage.
Speaker: If more of us creatives who are considered lucky to be doing what we do to earn our living actually stood behind our prices and say, I charge what I charge because it represents the value that I provide, then the marketplace would have no expectation that they could buy a handcrafted product or a personalized service that will be at the same cost as something produced en masse or a cookie cutter service.
Speaker: Think about the difference in price you would pay for a DIY will pack that you buy at the post office. In comparison to a customised will that you have a solicitor put together for you. Now you might think, oh, that's different, but is it? How different is it that we are offering a small number of uniquely crafted products or services based on a unique skill set to a handful of people willing to pay for that? Compared to a solicitor who serves a small number of clients
Speaker: at a price point to match the service that they provide. The difference is that as creatives, we often undervalue what you do for starters, and we try and serve everyone at a price point that matches the mass produced. In doing so, you're doing yourself out of a business. I learned the hard way in my photography business that there's more value in serving a few at a higher price point that matches the value I provide.
Speaker: And to be honest, I've had to really work on overcoming that same mistake as a product -based business. Having a retail store open to the public has meant that I have had to address this over and over again, sifting through the rubble to find the gold when it comes to connecting with customers who are actually my target audience.
Speaker: Running by appointment, however, has really helped a lot. When someone says, you never open anymore, I say, I am open. I run by appointment. And you can always book an appointment. If they respond with, oh no, that's OK, I just wanted to browse, then I can't help but chuckle on the inside and say to myself, that's why I run by appointment. How often do you meander into a solicitor's office just to browse the artwork on their walls?
Speaker: Now, you're probably thinking, I can't charge what it takes to make what I do. I spend hours on each piece. People would never pay what I have to charge to cover my time. Yep, and you might be right. And if that's the case, you might want to ask yourself the hard truth. Is what you're doing really sustainable as a business? Or should you just do it as a hobby and enjoy it on the side? But if you like me and can't see yourself making money doing anything else other than using your craft,
Speaker: Then the solution is to create some items that are super simple, low cost to produce, and that you can transfer some of the cost of producing the bigger ticket items onto. Now, just because it's super simple to make doesn't mean you only have to charge $5 for them. Selling them for $15, $20 and making bigger batches allows you to sell a lot more to make up the difference on the things that are
Speaker: you are super passionate about that take you 10 times as long to create. Now, I'm not saying you should create things that you don't believe in. I'm not saying just make junk and sell it for nothing. I'm saying just make some things that are quick and easy to make that can help balance out the fact that you can't charge the full amount for the things that you are super passionate about that take you hours and hours to make. And when it comes to making those bigger ticket items, keep in mind that making multiples is much more cost -effective than making just one at a time.
Speaker: So I suggest creating at least three of them alongside of each other at the same time. As you become more efficient at making these items, it doesn't mean you should reduce how much you charge for them though. I love the story of Picasso being asked to draw something on a serviette and the person saying they'd be happy to pay whatever he felt it was worth. After quickly sketching a bird, Picasso then said, that'll be $10 ,000.
Speaker: But you did it in 30 seconds, the astonished person replied. No Picasso said, it's taken me 40 years to do that. If you are putting the time, energy and effort into honing your craft and refining your skills, then you too should park this story in the back of your mind for those moments when you start to doubt the price that you set for the work that you do. Another thing to consider is that just because something is out of someone's budget doesn't automatically mean it's expensive.
Speaker: This year, I really wanted to do a course in handcrafting a medicine drum. It was nearly $4 ,000 for the course and it ran over a few months and it included a week stay by a river learning how to connect and journey with the drum that you created. You also learned how to tune the drum and what goes into creating drums with different resonance. Now, does that sound expensive to you? Well, with the depth of teachings and facilitation and understanding in what goes into the creation of a medicine drum,
Speaker: this course offered, for me it sounds like value. But right now it's out of my budget. That doesn't mean that the person should reduce their offering based on my circumstance. And it doesn't mean that I'll never do the course because I just can't do it right now. So when someone responds to your offering, that's expensive, just let it wash over.
Speaker: And in your mind, remind yourself that it's not your offering that's expensive, it's just that their budget doesn't allow for them to invest in your offering right now. But remember, you're not trying to serve everyone. There is no possible way you could even try. What I would like to encourage you to do is stand behind your pricing. If you truly believe you are giving 110 % to what you are doing, then don't charge 80%.
Speaker: The ripple effect of more creative souls doing what they love to earn their living will have a more beautiful impact than trying to fit their square peg in a round hole just to make ends meet. If you think that there's somebody out there that could benefit from hearing this message right now, then please do pass it on.
Speaker: Thank you so much for your time. I know how valuable it is and I hope you got value out of listening to this podcast. If you are looking for a coach to support and guide you through your own unique journey of creating a life you love, then reach out for a connection call. And if you'd like to connect with other creative souls in person by joining us at a workshop or retreat or to book a unique shopping experience here at Creators Nest, I run those by appointment. So check out the website for more details. The link is in the show notes.
Speaker: Oh, and please leave a review. I'd love to hear any insights or inspirations that were activated in you from this podcast. And I look forward to drumming, dancing or soaring alongside of you.
