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3 Things Entrepreneurs & Small Business Owners Should Consider Before Putting Prices on Their Website

prices-on-websiteBuilding or re-launching a website is an important step in the business building process.  Websites must be informational and offer strategic calls to action that allow you to add new users to your marketing funnel and sell your products and services.

One of the consistent questions I get amongst solo-preneurs is whether or not they should list their prices on their website.  And the studies show it both ways – there’s a distinct group of consumers who want to know and another subset that don’t. That’s exactly why when Detra submitted a similar question via www.askdarnyelle.com, I was happy to weigh in on the topic.

“Hi Darnyelle.  I am relaunching the speaking division of my company.  Should I list my prices on my website?  I have heard yes and no but want to get your perspective.”

Check out my response to Detra’s question in this week’s episode of Incredible Factor TV:

As I state in the episode, this is always an interesting question. My response; however, is always the same – it depends, and here’s why. As a general rule of thumb, when you are in a service-based business, my recommendation is that you list prices for services someone can purchase without needing to speak to you.  So, if you have a book, audio course or something that would be considered passive income, you can put those prices on your site.  When it comes to active services like consulting or speaking, I recommend that you don’t list your actual prices, but you can give them a starting point or price range.

For services like speaking, typically you’ll need to talk with the person to validate that the opportunity is right for you and learn the specifics of the engagement. That way you can give them an accurate fee that is comprehensive of everything it will take to make the event a win/win for attendees, the meeting planner and you, the speaker.  Your fee to speak will likely include everything except travel.  I’m not a big proponent of setting a fee that is gross without having all of the details in place and don’t recommend that you do business that way unless you are crystal clear on how long it will ALWAYS take you to prepare for a keynote, workshop or breakout session.  I do however recommend that it’s okay to give them an idea of what it would cost to book you but I think it can be challenging to put a number out there without all of the facts.  For instance, a signature keynote up to 90-minutes may start at $5,000 so that they have an idea, but if I need to customize that presentation and do other things, there’s going to be a cost added to that base price. And, I charge less for a local keynote than a do for a national one.  And the “starts at” fee is assuming that I am offering a signature keynote for which there is no preparation to offer to their group.  Even the slightest customization changes the fee.

So, I think that there are at least three things you need to consider before you decide to list your prices for any active service on your website:

1. Perception – While some love the fact that listing your prices will automatically prevent you from talking to someone who has no intention to hire you, I like to look at it this way.  Say, it’s an investment to work with you BUT the prospect has never invested in themselves.  If you just list your price and they can’t understand it, you could lose an opportunity to educate them on the ROI of working with you as well as why your services are valuable.  Investing starts with education, and it’s quite possible that when your prospect understands WHY, they will be in a position to invest.  Before I understood the value of investing in myself, I struggled to see why I’d ever PAY that kind of money – but it was a needed mind shift.  Once I had a conversation with someone who had a service I needed that was available at a premium, I understood, made the investment and got the problem solved.

2. Client Profile – Depending on the profile of your ideal client, listing your prices might be a good idea.  Here’s what I mean: Some people will NOT do business with a company that doesn’t give them an idea of what it would cost to hire them. You really have to have a good handle on your ideal client so that you ensure that listing your prices helps you and doesn’t hinder your business building success. Since perception is reality – your price could be perceived as too high or too low and not worth what you say. Placing your prices on your website gives an amount of trust to your prospect based on their client profile.

3. Branding – In my opinion, your brand can be set apart in the crowded marketplace by price alone.  Remember that there are three different pricing strategies you can use in your business – low, high or parity.  To learn more about those three you can see my blog post about pricing strategies.  After all, pricing is an important part of your marketing strategy. Deciding the place you want to hold in the marketplace could be a good indication as to whether or not your prices (or a price range) should be accessible via your website.  What you charge makes it clear to a prospect how you see yourself in your industry  – as a leader or follower.

And let me be clear – there is no right or wrong decision to put your prices on your website.  You have to do what works for your business model and marketing plan.  And think about this – giving a prospect a range or idea of what it would cost to work with you will allow those who see you as their solution to budget and save to be able to invest in your services – which is a total win/win.

Now I want to hear from you, what’s your two cents? Do you have your prices on your website?  How did you decide to list them?  Have there been any times when you’ve had to adjust those prices and as a result did you take your prices down?

©2014 by Darnyelle A. Jervey. All Rights Reserved. Darnyelle A. Jervey, MBA, The Incredible Factor Speaker, Business Coach and Marketing Mentor, is the founder of Incredible One Enterprises.com, Incredible Factor University® and the Leverage Your Incredible Factor System®, a proven step-by-step program for more clients, more income and more leverage in your business. For more information and a FREE audio CD “7 Critical Mistakes Entrepreneurs Must Avoid When Unleashing Your Incredible Factor So You Attract More Clients, Make More Money and Gain More Leverage” just fill out the form below.

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